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Tax 1040ez 5. Tax 1040ez   How To Get Tax Help Table of Contents Go online, use a smart phone, call or walk in to an office near you. Tax 1040ez Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Tax 1040ez Free help with your tax return. Tax 1040ez    Free help in preparing your return is available nationwide from IRS-certified volunteers. Tax 1040ez The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Tax 1040ez The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Tax 1040ez Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Tax 1040ez Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Tax 1040ez To find the nearest VITA or TCE site, visit IRS. Tax 1040ez gov or call 1-800-906-9887. Tax 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. Tax 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. Tax 1040ez aarp. Tax 1040ez org/money/taxaide or call 1-888-227-7669. Tax 1040ez   For more information on these programs, go to IRS. Tax 1040ez gov and enter “VITA” in the search box. Tax 1040ez Internet. Tax 1040ez IRS. Tax 1040ez gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Tax 1040ez Apply for an Employer Identification Number (EIN). Tax 1040ez Go to IRS. Tax 1040ez gov and enter Apply for an EIN in the search box. Tax 1040ez Request an Electronic Filing PIN by going to IRS. Tax 1040ez gov and entering Electronic Filing PIN in the search box. Tax 1040ez Check the status of your 2013 refund with Where's My Refund? Go to IRS. Tax 1040ez gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Tax 1040ez If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Tax 1040ez Check the status of your amended return. Tax 1040ez Go to IRS. Tax 1040ez gov and enter Where's My Amended Return in the search box. Tax 1040ez Download forms, instructions, and publications, including some accessible versions. Tax 1040ez Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Tax 1040ez gov or IRS2Go. Tax 1040ez Tax return and tax account transcripts are generally available for the current year and past three years. Tax 1040ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. Tax 1040ez gov. Tax 1040ez Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Tax 1040ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Tax 1040ez gov. Tax 1040ez Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Tax 1040ez gov or IRS2Go. Tax 1040ez Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Tax 1040ez An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Tax 1040ez Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Tax 1040ez If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Tax 1040ez Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Tax 1040ez Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Tax 1040ez gov. Tax 1040ez Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Tax 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Tax 1040ez Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Tax 1040ez AARP offers the Tax-Aide counseling program as part of the TCE program. Tax 1040ez Visit AARP's website to find the nearest Tax-Aide location. Tax 1040ez Research your tax questions. Tax 1040ez Search publications and instructions by topic or keyword. Tax 1040ez Read the Internal Revenue Code, regulations, or other official guidance. Tax 1040ez Read Internal Revenue Bulletins. Tax 1040ez Sign up to receive local and national tax news by email. Tax 1040ez Phone. Tax 1040ez You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Tax 1040ez Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Tax 1040ez Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Tax 1040ez Call to locate the nearest volunteer help site, 1-800-906-9887. Tax 1040ez Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Tax 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Tax 1040ez Most VITA and TCE sites offer free electronic filing. Tax 1040ez Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Tax 1040ez Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Tax 1040ez Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Tax 1040ez The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Tax 1040ez If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Tax 1040ez Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Tax 1040ez Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Tax 1040ez Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Tax 1040ez Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Tax 1040ez Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Tax 1040ez You should receive your order within 10 business days. Tax 1040ez Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Tax 1040ez Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Tax 1040ez Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Tax 1040ez Call to ask tax questions, 1-800-829-1040. Tax 1040ez Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Tax 1040ez The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Tax 1040ez These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Tax 1040ez gsa. Tax 1040ez gov/fedrelay. Tax 1040ez Walk-in. Tax 1040ez You can find a selection of forms, publications and services — in-person, face-to-face. Tax 1040ez Products. Tax 1040ez You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Tax 1040ez Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Tax 1040ez Services. Tax 1040ez You can walk in to your local TAC most business days for personal, face-to-face tax help. Tax 1040ez An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Tax 1040ez If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Tax 1040ez No appointment is necessary—just walk in. Tax 1040ez Before visiting, check www. Tax 1040ez irs. Tax 1040ez gov/localcontacts for hours of operation and services provided. Tax 1040ez Mail. Tax 1040ez You can send your order for forms, instructions, and publications to the address below. Tax 1040ez You should receive a response within 10 business days after your request is received. Tax 1040ez  Internal Revenue Service 1201 N. Tax 1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Tax 1040ez    The Taxpayer Advocate Service (TAS) is your voice at the IRS. Tax 1040ez Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Tax 1040ez What can TAS do for you?    We can offer you free help with IRS problems that you can't resolve on your own. Tax 1040ez We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Tax 1040ez You face (or your business is facing) an immediate threat of adverse action. Tax 1040ez You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Tax 1040ez   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Tax 1040ez Here's why we can help: TAS is an independent organization within the IRS. Tax 1040ez Our advocates know how to work with the IRS. Tax 1040ez Our services are free and tailored to meet your needs. Tax 1040ez We have offices in every state, the District of Columbia, and Puerto Rico. Tax 1040ez How can you reach us?    If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Tax 1040ez irs. Tax 1040ez gov/advocate, or call us toll-free at 1-877-777-4778. Tax 1040ez How else does TAS help taxpayers?    TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Tax 1040ez If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Tax 1040ez irs. Tax 1040ez gov/sams. Tax 1040ez Low Income Taxpayer Clinics. Tax 1040ez    Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Tax 1040ez Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Tax 1040ez Visit www. Tax 1040ez TaxpayerAdvocate. Tax 1040ez irs. Tax 1040ez gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Tax 1040ez Prev  Up  Next   Home   More Online Publications
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Tax 1040ez 23. Tax 1040ez   Interest Expense Table of Contents Introduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. Tax 1040ez Mortgage proceeds used for business or investment. Tax 1040ez Introduction This chapter discusses what interest expenses you can deduct. Tax 1040ez Interest is the amount you pay for the use of borrowed money. Tax 1040ez The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). Tax 1040ez Home mortgage interest, including certain points and mortgage insurance premiums. Tax 1040ez Investment interest. Tax 1040ez This chapter explains these deductions. Tax 1040ez It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. Tax 1040ez Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. Tax 1040ez Useful Items - You may want to see: Publication 936 Home Mortgage Interest Deduction 550 Investment Income and Expenses Home Mortgage Interest Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Tax 1040ez The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Tax 1040ez You can deduct home mortgage interest if all the following conditions are met. Tax 1040ez You file Form 1040 and itemize deductions on Schedule A (Form 1040). Tax 1040ez The mortgage is a secured debt on a qualified home in which you have an ownership interest. Tax 1040ez (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. Tax 1040ez The term “qualified home” means your main home or second home. Tax 1040ez For details, see Publication 936. Tax 1040ez )  Both you and the lender must intend that the loan be repaid. Tax 1040ez Amount Deductible In most cases, you can deduct all of your home mortgage interest. Tax 1040ez How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Tax 1040ez Fully deductible interest. Tax 1040ez   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Tax 1040ez (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Tax 1040ez )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Tax 1040ez Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Tax 1040ez Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Tax 1040ez The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Tax 1040ez   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. Tax 1040ez    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. Tax 1040ez Figure 23-A. Tax 1040ez Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. Tax 1040ez Figure 23-A. Tax 1040ez Is My Interest Fully Deductible? Limits on deduction. Tax 1040ez   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. Tax 1040ez If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. Tax 1040ez Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Tax 1040ez It also describes certain special situations that may affect your deduction. Tax 1040ez Late payment charge on mortgage payment. Tax 1040ez   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Tax 1040ez Mortgage prepayment penalty. Tax 1040ez   If you pay off your home mortgage early, you may have to pay a penalty. Tax 1040ez You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Tax 1040ez Sale of home. Tax 1040ez   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of sale. Tax 1040ez Example. Tax 1040ez John and Peggy Harris sold their home on May 7. Tax 1040ez Through April 30, they made home mortgage interest payments of $1,220. Tax 1040ez The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Tax 1040ez Their mortgage interest deduction is $1,270 ($1,220 + $50). Tax 1040ez Prepaid interest. Tax 1040ez   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Tax 1040ez You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Tax 1040ez However, there is an exception that applies to points, discussed later. Tax 1040ez Mortgage interest credit. Tax 1040ez   You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Tax 1040ez Figure the credit on Form 8396, Mortgage Interest Credit. Tax 1040ez If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Tax 1040ez   For more information on the credit, see chapter 37. Tax 1040ez Ministers' and military housing allowance. Tax 1040ez   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Tax 1040ez Hardest Hit Fund and Emergency Homeowners' Loan Programs. Tax 1040ez   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Tax 1040ez You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Tax 1040ez You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Tax 1040ez If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). Tax 1040ez However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Tax 1040ez Mortgage assistance payments under section 235 of the National Housing Act. Tax 1040ez   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Tax 1040ez You cannot deduct the interest that is paid for you. Tax 1040ez No other effect on taxes. Tax 1040ez   Do not include these mortgage assistance payments in your income. Tax 1040ez Also, do not use these payments to reduce other deductions, such as real estate taxes. Tax 1040ez Divorced or separated individuals. Tax 1040ez   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Tax 1040ez See the discussion of Payments for jointly-owned home in chapter 18. Tax 1040ez Redeemable ground rents. Tax 1040ez   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Tax 1040ez   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Tax 1040ez For more information, see Publication 936. Tax 1040ez Nonredeemable ground rents. Tax 1040ez   Payments on a nonredeemable ground rent are not mortgage interest. Tax 1040ez You can deduct them as rent if they are a business expense or if they are for rental property. Tax 1040ez Reverse mortgages. Tax 1040ez   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Tax 1040ez With a reverse mortgage, you retain title to your home. Tax 1040ez Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Tax 1040ez Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Tax 1040ez Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. Tax 1040ez Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. Tax 1040ez Rental payments. Tax 1040ez   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Tax 1040ez This is true even if the settlement papers call them interest. Tax 1040ez You cannot deduct these payments as home mortgage interest. Tax 1040ez Mortgage proceeds invested in tax-exempt securities. Tax 1040ez   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Tax 1040ez “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. Tax 1040ez Refunds of interest. Tax 1040ez   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Tax 1040ez If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Tax 1040ez However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Tax 1040ez This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Tax 1040ez    If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Tax 1040ez For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Tax 1040ez   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. Tax 1040ez Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Tax 1040ez Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Tax 1040ez A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Tax 1040ez See Points paid by the seller , later. Tax 1040ez General Rule You generally cannot deduct the full amount of points in the year paid. Tax 1040ez Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Tax 1040ez See Deduction Allowed Ratably , next. Tax 1040ez For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Tax 1040ez Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Tax 1040ez You use the cash method of accounting. Tax 1040ez This means you report income in the year you receive it and deduct expenses in the year you pay them. Tax 1040ez Most individuals use this method. Tax 1040ez Your loan is secured by a home. Tax 1040ez (The home does not need to be your main home. Tax 1040ez ) Your loan period is not more than 30 years. Tax 1040ez If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Tax 1040ez Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Tax 1040ez Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Tax 1040ez (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. Tax 1040ez ) Your loan is secured by your main home. Tax 1040ez (Your main home is the one you ordinarily live in most of the time. Tax 1040ez ) Paying points is an established business practice in the area where the loan was made. Tax 1040ez The points paid were not more than the points generally charged in that area. Tax 1040ez You use the cash method of accounting. Tax 1040ez This means you report income in the year you receive it and deduct expenses in the year you pay them. Tax 1040ez (If you want more information about this method, see Accounting Methods in chapter 1. Tax 1040ez ) The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Tax 1040ez The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Tax 1040ez The funds you provided are not required to have been applied to the points. Tax 1040ez They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Tax 1040ez You cannot have borrowed these funds from your lender or mortgage broker. Tax 1040ez You use your loan to buy or build your main home. Tax 1040ez The points were computed as a percentage of the principal amount of the mortgage. Tax 1040ez The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Tax 1040ez The points may be shown as paid from either your funds or the seller's. Tax 1040ez Figure 23-B. Tax 1040ez Are My Points Fully Deductible This Year? Please click here for the text description of the image. Tax 1040ez Figure 23-B. Tax 1040ez Are My Points Fully Deductible This Year? Note. Tax 1040ez If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Tax 1040ez Home improvement loan. Tax 1040ez   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Tax 1040ez Second home. Tax 1040ez You cannot fully deduct in the year paid points you pay on loans secured by your second home. Tax 1040ez You can deduct these points only over the life of the loan. Tax 1040ez Refinancing. Tax 1040ez   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Tax 1040ez This is true even if the new mortgage is secured by your main home. Tax 1040ez   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Tax 1040ez You can deduct the rest of the points over the life of the loan. Tax 1040ez Example 1. Tax 1040ez In 1998, Bill Fields got a mortgage to buy a home. Tax 1040ez In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Tax 1040ez The mortgage is secured by his home. Tax 1040ez To get the new loan, he had to pay three points ($3,000). Tax 1040ez Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Tax 1040ez Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Tax 1040ez The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Tax 1040ez Bill's first payment on the new loan was due July 1. Tax 1040ez He made six payments on the loan in 2013 and is a cash basis taxpayer. Tax 1040ez Bill used the funds from the new mortgage to repay his existing mortgage. Tax 1040ez Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Tax 1040ez He cannot deduct all of the points in 2013. Tax 1040ez He can deduct two points ($2,000) ratably over the life of the loan. Tax 1040ez He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Tax 1040ez The other point ($1,000) was a fee for services and is not deductible. Tax 1040ez Example 2. Tax 1040ez The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Tax 1040ez Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Tax 1040ez His deduction is $500 ($2,000 × 25%). Tax 1040ez Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Tax 1040ez This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Tax 1040ez The total amount Bill deducts in 2013 is $550 ($500 + $50). Tax 1040ez Special Situations This section describes certain special situations that may affect your deduction of points. Tax 1040ez Original issue discount. Tax 1040ez   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Tax 1040ez This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Tax 1040ez Amounts charged for services. Tax 1040ez   Amounts charged by the lender for specific services connected to the loan are not interest. Tax 1040ez Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Tax 1040ez You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Tax 1040ez Points paid by the seller. Tax 1040ez   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Tax 1040ez Treatment by seller. Tax 1040ez   The seller cannot deduct these fees as interest. Tax 1040ez But they are a selling expense that reduces the amount realized by the seller. Tax 1040ez See chapter 15 for information on selling your home. Tax 1040ez Treatment by buyer. Tax 1040ez    The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Tax 1040ez If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Tax 1040ez If any of those tests are not met, the buyer deducts the points over the life of the loan. Tax 1040ez   For information about basis, see chapter 13. Tax 1040ez Funds provided are less than points. Tax 1040ez   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Tax 1040ez In addition, you can deduct any points paid by the seller. Tax 1040ez Example 1. Tax 1040ez When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Tax 1040ez You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Tax 1040ez Of the $1,000 charged for points, you can deduct $750 in the year paid. Tax 1040ez You spread the remaining $250 over the life of the mortgage. Tax 1040ez Example 2. Tax 1040ez The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Tax 1040ez In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Tax 1040ez You spread the remaining $250 over the life of the mortgage. Tax 1040ez You must reduce the basis of your home by the $1,000 paid by the seller. Tax 1040ez Excess points. Tax 1040ez   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Tax 1040ez You must spread any additional points over the life of the mortgage. Tax 1040ez Mortgage ending early. Tax 1040ez   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Tax 1040ez However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Tax 1040ez Instead, deduct the remaining balance over the term of the new loan. Tax 1040ez    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Tax 1040ez Example. Tax 1040ez Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Tax 1040ez He deducts $200 points per year. Tax 1040ez Through 2012, Dan has deducted $2,200 of the points. Tax 1040ez Dan prepaid his mortgage in full in 2013. Tax 1040ez He can deduct the remaining $800 of points in 2013. Tax 1040ez Limits on deduction. Tax 1040ez   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . Tax 1040ez See Publication 936 for details. Tax 1040ez Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Tax 1040ez The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. Tax 1040ez Qualified mortgage insurance. Tax 1040ez   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Tax 1040ez   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Tax 1040ez If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Tax 1040ez These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Tax 1040ez Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Tax 1040ez Special rules for prepaid mortgage insurance. Tax 1040ez   Generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Tax 1040ez You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Tax 1040ez No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Tax 1040ez This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Tax 1040ez See the Example below. Tax 1040ez Example. Tax 1040ez Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Tax 1040ez Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Tax 1040ez Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Tax 1040ez Ryan's adjusted gross income (AGI) for 2012 is $76,000. Tax 1040ez Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. Tax 1040ez For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. Tax 1040ez In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Tax 1040ez Limit on deduction. Tax 1040ez   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Tax 1040ez See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Tax 1040ez If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Tax 1040ez Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Tax 1040ez You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Tax 1040ez A governmental unit is a person for purposes of furnishing the statement. Tax 1040ez The statement for each year should be sent to you by January 31 of the following year. Tax 1040ez A copy of this form will also be sent to the IRS. Tax 1040ez The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Tax 1040ez However, it should not show any interest that was paid for you by a government agency. Tax 1040ez As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Tax 1040ez However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Tax 1040ez See Points , earlier, to determine whether you can deduct points not shown on Form 1098. Tax 1040ez Prepaid interest on Form 1098. Tax 1040ez   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Tax 1040ez However, you cannot deduct the prepaid amount for January 2014 in 2013. Tax 1040ez (See Prepaid interest , earlier. Tax 1040ez ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Tax 1040ez You will include the interest for January 2014 with the other interest you pay for 2014. Tax 1040ez See How To Report , later. Tax 1040ez Refunded interest. Tax 1040ez   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Tax 1040ez See Refunds of interest , earlier. Tax 1040ez Mortgage insurance premiums. Tax 1040ez   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. Tax 1040ez See Mortgage Insurance Premiums, earlier. Tax 1040ez Investment Interest This section discusses interest expenses you may be able to deduct as an investor. Tax 1040ez If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Tax 1040ez You can deduct investment interest subject to the limit discussed later. Tax 1040ez However, you cannot deduct interest you incurred to produce tax-exempt income. Tax 1040ez Nor can you deduct interest expenses on straddles. Tax 1040ez Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Tax 1040ez Investment Property Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Tax 1040ez It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Tax 1040ez Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Tax 1040ez Partners, shareholders, and beneficiaries. Tax 1040ez   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Tax 1040ez Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Tax 1040ez Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Tax 1040ez The allocation is not affected by the use of property that secures the debt. Tax 1040ez Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. Tax 1040ez You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. Tax 1040ez The interest carried over is treated as investment interest paid or accrued in that next year. Tax 1040ez You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Tax 1040ez Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Tax 1040ez Investment income. Tax 1040ez    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Tax 1040ez Investment income does not include Alaska Permanent Fund dividends. Tax 1040ez It also does not include qualified dividends or net capital gain unless you choose to include them. Tax 1040ez Choosing to include qualified dividends. Tax 1040ez   Investment income generally does not include qualified dividends, discussed in chapter 8. Tax 1040ez However, you can choose to include all or part of your qualified dividends in investment income. Tax 1040ez   You make this choice by completing Form 4952, line 4g, according to its instructions. Tax 1040ez   If you choose to include any amount of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Tax 1040ez Choosing to include net capital gain. Tax 1040ez   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Tax 1040ez However, you can choose to include all or part of your net capital gain in investment income. Tax 1040ez    You make this choice by completing Form 4952, line 4g, according to its instructions. Tax 1040ez   If you choose to include any amount of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Tax 1040ez    Before making either choice, consider the overall effect on your tax liability. Tax 1040ez Compare your tax if you make one or both of these choices with your tax if you do not. Tax 1040ez Investment income of child reported on parent's return. Tax 1040ez    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. Tax 1040ez If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814, Parents' Election To Report Child's Interest and Dividends. Tax 1040ez Child's qualified dividends. Tax 1040ez   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Tax 1040ez However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Tax 1040ez   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Tax 1040ez Child's Alaska Permanent Fund dividends. Tax 1040ez   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Tax 1040ez To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Tax 1040ez Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Tax 1040ez Subtract the result from the amount on Form 8814, line 12. Tax 1040ez Child's capital gain distributions. Tax 1040ez    If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D, line 13, or Form 1040, line 13) generally does not count as investment income. Tax 1040ez However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Tax 1040ez   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Tax 1040ez Investment expenses. Tax 1040ez   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Tax 1040ez Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Tax 1040ez Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. Tax 1040ez Losses from passive activities. Tax 1040ez   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Tax 1040ez See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. Tax 1040ez Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. Tax 1040ez Exception to use of Form 4952. Tax 1040ez   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Tax 1040ez Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Tax 1040ez You do not have any other deductible investment expenses. Tax 1040ez You have no carryover of investment interest expense from 2012. Tax 1040ez If you meet all of these tests, you can deduct all of your investment interest. Tax 1040ez More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. Tax 1040ez Items You Cannot Deduct Some interest payments are not deductible. Tax 1040ez Certain expenses similar to interest also are not deductible. Tax 1040ez Nondeductible expenses include the following items. Tax 1040ez Personal interest (discussed later). Tax 1040ez Service charges (however, see Other Expenses (Line 23) in chapter 28). Tax 1040ez Annual fees for credit cards. Tax 1040ez Loan fees. Tax 1040ez Credit investigation fees. Tax 1040ez Interest to purchase or carry tax-exempt securities. Tax 1040ez Penalties. Tax 1040ez   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. Tax 1040ez Personal Interest Personal interest is not deductible. Tax 1040ez Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Tax 1040ez It includes the following items. Tax 1040ez Interest on car loans (unless you use the car for business). Tax 1040ez Interest on federal, state, or local income tax. Tax 1040ez Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. Tax 1040ez Late payment charges by a public utility. Tax 1040ez You may be able to deduct interest you pay on a qualified student loan. Tax 1040ez For details, see Publication 970, Tax Benefits for Education. Tax 1040ez Allocation of Interest If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allocate the interest on the loan to each use. Tax 1040ez However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. Tax 1040ez You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. Tax 1040ez You do this by tracing disbursements of the debt proceeds to specific uses. Tax 1040ez For details on how to do this, see chapter 4 of Publication 535. Tax 1040ez How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. Tax 1040ez Where you deduct your interest expense generally depends on how you use the loan proceeds. Tax 1040ez See Table 23-1 for a summary of where to deduct your interest expense. Tax 1040ez Home mortgage interest and points. Tax 1040ez   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Tax 1040ez If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Tax 1040ez Attach a statement explaining the difference and print “See attached” next to line 10. Tax 1040ez    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Tax 1040ez If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Tax 1040ez The seller must give you this number and you must give the seller your TIN. Tax 1040ez A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Tax 1040ez Failure to meet any of these requirements may result in a $50 penalty for each failure. Tax 1040ez The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Tax 1040ez See Social Security Number (SSN) in chapter 1 for more information about TINs. Tax 1040ez    If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Tax 1040ez   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Tax 1040ez More than one borrower. Tax 1040ez   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Tax 1040ez Show how much of the interest each of you paid, and give the name and address of the person who received the form. Tax 1040ez Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Tax 1040ez Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Tax 1040ez   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Tax 1040ez You should let each of the other borrowers know what his or her share is. Tax 1040ez Mortgage proceeds used for business or investment. Tax 1040ez    If your home mortgage interest deduction is limited, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 23-1. Tax 1040ez It shows where to deduct the part of your excess interest that is for those activities. Tax 1040ez Investment interest. Tax 1040ez    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. Tax 1040ez Amortization of bond premium. Tax 1040ez   There are various ways to treat the premium you pay to buy taxable bonds. Tax 1040ez See Bond Premium Amortization in Publication 550. Tax 1040ez Income-producing rental or royalty interest. Tax 1040ez   Deduct interest on a loan for income-producing rental or royalty property that is not used in your business in Part I of Schedule E (Form 1040). Tax 1040ez Example. Tax 1040ez You rent out part of your home and borrow money to make repairs. Tax 1040ez You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). Tax 1040ez Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. Tax 1040ez Table 23-1. Tax 1040ez Where To Deduct Your Interest Expense IF you have . Tax 1040ez . Tax 1040ez . Tax 1040ez THEN deduct it on . Tax 1040ez . Tax 1040ez . Tax 1040ez AND for more information go to . Tax 1040ez . Tax 1040ez . Tax 1040ez deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. Tax 1040ez deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. Tax 1040ez deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. Tax 1040ez deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. Tax 1040ez deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. Tax 1040ez deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. Tax 1040ez deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. Tax 1040ez deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. Tax 1040ez deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. Tax 1040ez personal interest not deductible. 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