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If you paid mortgage interest to a financial institution, by January 31st you should be sent a Form 1098 reporting the amount of interest and points you paid during the previous year.
The amount shown in Box 1 of the 1098 is the amount of interest you paid, and the amount shown in Box 2 is the amount of points paid. These amounts are added together (and if you have a mortgage on a second home, add the amounts on the 1098 from that mortgage also), and entered on Line 10 of Schedule A, Itemized Deductions.
If the amounts shown on Form 1098 don't agree with what you actually paid (for example, the bank did not add in the interest from that extra payment you made at the end of December), enter the correct amount but attach a short statement to the return explaining the discrepancy.
If you paid interest that was not reported on a 1098, it should be entered on Line 11 of the Schedule A. In most cases, this will be interest you paid to an individual, such as a seller who took back a mortgage, or your rich Uncle Harry who lent you the money for part of the down payment. You'll need to enter the person's name, Social Security number, and address on the dotted lines next to Line 11.
On Line 12, report any points that were not reported on Form 1098 (for example, if you paid off a loan you had already refinanced at least once). Qualified mortgage insurance premiums go on Line 13.
Lines 10, 11, 12 and 13 are added up, together with any amount on Line 14 for investment interest, and the total is entered on Line 15 of the Schedule A. Remember that certain high-income taxpayers may have all of their itemized deductions limited.