If you paid mortgage interest during 2026, you may be able to deduct it on your federal tax return. Most homeowners receive Form 1098, Mortgage Interest Statement, from their lender. This form shows the mortgage interest, points, and other information you may need to claim your deduction. The IRS requires lenders to issue Form 1098 when they receive at least $600 of mortgage interest during the year.
Before claiming the deduction, make sure you know how the property was used during the year. The reporting method is different for a primary residence and a rental property.
Where Do I Report Mortgage Interest?
Main Home: Itemized Deduction
If the mortgage is secured by your primary residence, you may be able to claim the interest as an itemized deduction on Schedule A. Keep in mind that you'll generally benefit from this deduction only if your total itemized deductions are greater than your standard deduction.
To enter mortgage interest from Form 1098 in the program:
- Go to Federal
- Select Deductions
- Choose Select My Forms
- Open Itemized Deductions
- Select Mortgage Interest and Expenses
Rental Property: Schedule E Expense
If the mortgage interest relates to a rental property, it is generally reported as a rental expense on Schedule E rather than as an itemized deduction.
To enter mortgage interest for a rental property:
- Go to Federal
- Select Income from the navigation menu
- Choose Select My Forms, then continue
- Select Profit or Loss From Rentals and Royalties
- Go to Expenses
- Select Mortgage Interest
Home Used for Both Personal and Rental Purposes
If you lived in the home for part of the year and later converted it to a rental property, you'll need to divide the mortgage interest between personal and rental use.
Important: You cannot deduct the same mortgage interest twice. Any amount claimed as a rental expense on Schedule E cannot also be claimed as an itemized deduction on Schedule A.
How Do I Report Mortgage Interest and Points?
- Total mortgage interest paid during the year
- Points paid on the loan
- Mortgage principal information
- Any refund of overpaid interest
What If Form 1098 Shows a Refund of Overpaid Interest?
Additional Mortgage Interest Deduction Rules
The mortgage interest deduction is subject to IRS limitations. For most mortgages taken out after December 15, 2017, interest is generally deductible only on up to $750,000 of qualified home acquisition debt ($375,000 if married filing separately). Higher limits may apply to certain older mortgages. Mortgage insurance premiums are currently not deductible unless Congress extends the provision.