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2010 Tax Return Online

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2010 Tax Return Online

2010 tax return online 10. 2010 tax return online   Retirement Savings Contributions Credit (Saver's Credit) Table of Contents Full-time student. 2010 tax return online Adjusted gross income. 2010 tax return online Distributions received by spouse. 2010 tax return online Testing period. 2010 tax return online If you or your employer make eligible contributions (defined later) to a retirement plan, you may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). 2010 tax return online This credit could reduce the federal income tax you pay dollar for dollar. 2010 tax return online Can you claim the credit?   If you or your employer make eligible contributions to a retirement plan, you can claim the credit if all of the following apply. 2010 tax return online You are not under age 18. 2010 tax return online You are not a full-time student (explained next). 2010 tax return online No one else, such as your parent(s), claims an exemption for you on their tax return. 2010 tax return online Your adjusted gross income (defined later) is not more than: $59,000 for 2013 ($60,000 for 2014) if your filing status is married filing jointly, $44,250 for 2013 ($45,000 for 2014) if your filing status is head of household (with qualifying person), or $29,500 for 2013 ($30,000 for 2014) if your filing status is single, married filing separately, or qualifying widow(er) with dependent child. 2010 tax return online Full-time student. 2010 tax return online   You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government. 2010 tax return online You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full-time. 2010 tax return online Adjusted gross income. 2010 tax return online   This is generally the amount on line 38 of your 2013 Form 1040 or line 22 of your 2013 Form 1040A. 2010 tax return online However, you must add to that amount any exclusion or deduction claimed for the year for: Foreign earned income, Foreign housing costs, Income for bona fide residents of American Samoa, and Income from Puerto Rico. 2010 tax return online Eligible contributions. 2010 tax return online   These include: Contributions to a traditional or Roth IRA, Elective deferrals, including amounts designated as after-tax Roth contributions, to: A 401(k) plan (including a SIMPLE 401(k)), A section 403(b) annuity, An eligible deferred compensation plan of a state or local government (a governmental 457 plan), A SIMPLE IRA plan, or A salary reduction SEP, and Contributions to a section 501(c)(18) plan. 2010 tax return online They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or a section 403(b) annuity. 2010 tax return online For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment. 2010 tax return online Reducing eligible contributions. 2010 tax return online   Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included earlier under Eligible contributions. 2010 tax return online Also reduce your eligible contributions by any distribution from a Roth IRA that is not rolled over, even if the distribution is not taxable. 2010 tax return online      Do not reduce your eligible contributions by any of the following: The portion of any distribution which is not includible in income because it is a trustee-to-trustee transfer or a rollover distribution. 2010 tax return online Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if: The distribution is made before the due date (including extensions) of your tax return for that year, You do not take a deduction for the contribution, and The distribution includes any income attributable to the contribution. 2010 tax return online Loans from a qualified employer plan treated as a distribution. 2010 tax return online Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals). 2010 tax return online Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k). 2010 tax return online Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA. 2010 tax return online Distributions from a military retirement plan. 2010 tax return online Distributions received by spouse. 2010 tax return online   Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit. 2010 tax return online Testing period. 2010 tax return online   The testing period consists of: The year in which you claim the credit, The 2 years before the year in which you claim the credit, and The period after the end of the year in which you claim the credit and before the due date of the return (including extensions) for filing your return for the year in which you claimed the credit. 2010 tax return online Example. 2010 tax return online You and your spouse filed joint returns in 2011 and 2012, and plan to do so in 2013 and 2014. 2010 tax return online You received a taxable distribution from a qualified plan in 2011 and a taxable distribution from an eligible section 457(b) deferred compensation plan in 2012. 2010 tax return online Your spouse received taxable distributions from a Roth IRA in 2013 and tax-free distributions from a Roth IRA in 2014 before April 15. 2010 tax return online You made eligible contributions to an IRA in 2013 and you otherwise qualify for this credit. 2010 tax return online You must reduce the amount of your qualifying contributions in 2013 by the total of the distributions you and your spouse received in 2011, 2012, 2013, and 2014. 2010 tax return online Maximum eligible contributions. 2010 tax return online   After your contributions are reduced, the maximum annual contribution on which you can base the credit is $2,000 per person. 2010 tax return online Effect on other credits. 2010 tax return online   The amount of this credit will not change the amount of your refundable tax credits. 2010 tax return online A refundable tax credit, such as the earned income credit or the additional child tax credit, is an amount that you would receive as a refund even if you did not otherwise owe any taxes. 2010 tax return online Maximum credit. 2010 tax return online   This is a nonrefundable credit. 2010 tax return online The amount of the credit in any year cannot be more than the amount of tax that you would otherwise pay (not counting any refundable credits or the adoption credit) in any year. 2010 tax return online If your tax liability is reduced to zero because of other nonrefundable credits, such as the education credits, then you will not be entitled to this credit. 2010 tax return online How to figure and report the credit. 2010 tax return online   The amount of the credit you can get is based on the contributions you make and your credit rate. 2010 tax return online The credit rate can be as low as 10% or as high as 50%. 2010 tax return online Your credit rate depends on your income and your filing status. 2010 tax return online See Form 8880, Credit for Qualified Retirement Savings Contributions, to determine your credit rate. 2010 tax return online   The maximum contribution taken into account is $2,000 per person. 2010 tax return online On a joint return, up to $2,000 is taken into account for each spouse. 2010 tax return online   Figure the credit on Form 8880. 2010 tax return online Report the credit on line 50 of your Form 1040 or line 32 of your Form 1040A, and attach Form 8880 to your return. 2010 tax return online Prev  Up  Next   Home   More Online Publications
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Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Akron 2 S. Main St.
Akron, OH 44308

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(330) 253-7013
Canton 301 McKinley Ave. SW
Canton, OH 44702

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(330) 588-4417 
Cincinnati  550 Main St.
Cincinnati, OH 45202 

Monday-Friday 8:30 a.m.-4:30 p.m.
 

Services Provided

(513) 263-3333 
Cincinnati
(West Chester) 
9075 Centre Pointe Dr.
West Chester, OH 45069

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

  Services Provided

(513) 263-3333 
Cleveland  1240 E. Ninth St.
Cleveland, OH 44199 

Monday-Friday 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(216) 522-4048 
Columbus  200 N. High St.
Columbus, OH 43215 

Monday-Friday 8:30 a.m.-4:30 p.m. 

 

Services Provided

(614) 280-8691 
Dayton  200 W. Second St.
Dayton, OH 45402 

Monday-Friday 8:30 a.m.-4:30 p.m.
  

Services Provided

(937) 610-2182 
Lima  401 W. North St.
Lima, OH 45801 

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

 Services Provided

(419) 223-5873 
Mansfield  180 N. Diamond St.
Mansfield, OH 44902 

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(419) 522-9204 
Toledo  Four Seagate
433 N. Summit
Toledo, OH 43604

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(419) 213-5165 
Youngstown  10 E. Commerce St. 
Youngstown, OH 44503 

Monday-Friday 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(330) 746-0006 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

 

The Taxpayer Advocate Service: Call (513) 263-3260 in Cincinnati, (216) 522-7134 in Cleveland or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Offices at:

Internal Revenue Service
1240 E. 9th St.
Room 403
Cleveland, OH 44199

Internal Revenue Service
550 Main St. Room 7024
Cincinnati, OH 45202

Internal Revenue Service
200 N. High St.
Room 425
Columbus, OH 43215

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 2010 Tax Return Online

2010 tax return online 23. 2010 tax return online   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. 2010 tax return online Mortgage proceeds used for business or investment. 2010 tax return online Introduction This chapter discusses what interest expenses you can deduct. 2010 tax return online Interest is the amount you pay for the use of borrowed money. 2010 tax return online The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). 2010 tax return online Home mortgage interest, including certain points and mortgage insurance premiums. 2010 tax return online Investment interest. 2010 tax return online This chapter explains these deductions. 2010 tax return online It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. 2010 tax return online Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. 2010 tax return online 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). 2010 tax return online The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. 2010 tax return online You can deduct home mortgage interest if all the following conditions are met. 2010 tax return online You file Form 1040 and itemize deductions on Schedule A (Form 1040). 2010 tax return online The mortgage is a secured debt on a qualified home in which you have an ownership interest. 2010 tax return online (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. 2010 tax return online The term “qualified home” means your main home or second home. 2010 tax return online For details, see Publication 936. 2010 tax return online )  Both you and the lender must intend that the loan be repaid. 2010 tax return online Amount Deductible In most cases, you can deduct all of your home mortgage interest. 2010 tax return online How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. 2010 tax return online Fully deductible interest. 2010 tax return online   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. 2010 tax return online (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. 2010 tax return online )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). 2010 tax return online 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). 2010 tax return online 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). 2010 tax return online The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. 2010 tax return online   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. 2010 tax return online    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. 2010 tax return online Figure 23-A. 2010 tax return online Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. 2010 tax return online Figure 23-A. 2010 tax return online Is My Interest Fully Deductible? Limits on deduction. 2010 tax return online   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. 2010 tax return online If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. 2010 tax return online Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. 2010 tax return online It also describes certain special situations that may affect your deduction. 2010 tax return online Late payment charge on mortgage payment. 2010 tax return online   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. 2010 tax return online Mortgage prepayment penalty. 2010 tax return online   If you pay off your home mortgage early, you may have to pay a penalty. 2010 tax return online 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. 2010 tax return online Sale of home. 2010 tax return online   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. 2010 tax return online Example. 2010 tax return online John and Peggy Harris sold their home on May 7. 2010 tax return online Through April 30, they made home mortgage interest payments of $1,220. 2010 tax return online 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. 2010 tax return online Their mortgage interest deduction is $1,270 ($1,220 + $50). 2010 tax return online Prepaid interest. 2010 tax return online   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. 2010 tax return online You can deduct in each year only the interest that qualifies as home mortgage interest for that year. 2010 tax return online However, there is an exception that applies to points, discussed later. 2010 tax return online Mortgage interest credit. 2010 tax return online   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. 2010 tax return online Figure the credit on Form 8396, Mortgage Interest Credit. 2010 tax return online If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. 2010 tax return online   For more information on the credit, see chapter 37. 2010 tax return online Ministers' and military housing allowance. 2010 tax return online   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. 2010 tax return online Hardest Hit Fund and Emergency Homeowners' Loan Programs. 2010 tax return online   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. 2010 tax return online 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. 2010 tax return online 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. 2010 tax return online 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). 2010 tax return online 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. 2010 tax return online Mortgage assistance payments under section 235 of the National Housing Act. 2010 tax return online   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. 2010 tax return online You cannot deduct the interest that is paid for you. 2010 tax return online No other effect on taxes. 2010 tax return online   Do not include these mortgage assistance payments in your income. 2010 tax return online Also, do not use these payments to reduce other deductions, such as real estate taxes. 2010 tax return online Divorced or separated individuals. 2010 tax return online   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. 2010 tax return online See the discussion of Payments for jointly-owned home in chapter 18. 2010 tax return online Redeemable ground rents. 2010 tax return online   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. 2010 tax return online   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. 2010 tax return online For more information, see Publication 936. 2010 tax return online Nonredeemable ground rents. 2010 tax return online   Payments on a nonredeemable ground rent are not mortgage interest. 2010 tax return online You can deduct them as rent if they are a business expense or if they are for rental property. 2010 tax return online Reverse mortgages. 2010 tax return online   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. 2010 tax return online With a reverse mortgage, you retain title to your home. 2010 tax return online 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. 2010 tax return online Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. 2010 tax return online Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. 2010 tax return online Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. 2010 tax return online Rental payments. 2010 tax return online   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. 2010 tax return online This is true even if the settlement papers call them interest. 2010 tax return online You cannot deduct these payments as home mortgage interest. 2010 tax return online Mortgage proceeds invested in tax-exempt securities. 2010 tax return online   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. 2010 tax return online “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. 2010 tax return online Refunds of interest. 2010 tax return online   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. 2010 tax return online 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. 2010 tax return online However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. 2010 tax return online This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. 2010 tax return online    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. 2010 tax return online For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. 2010 tax return online   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. 2010 tax return online Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. 2010 tax return online Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. 2010 tax return online A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. 2010 tax return online See Points paid by the seller , later. 2010 tax return online General Rule You generally cannot deduct the full amount of points in the year paid. 2010 tax return online Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. 2010 tax return online See Deduction Allowed Ratably , next. 2010 tax return online For exceptions to the general rule, see Deduction Allowed in Year Paid , later. 2010 tax return online 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. 2010 tax return online You use the cash method of accounting. 2010 tax return online This means you report income in the year you receive it and deduct expenses in the year you pay them. 2010 tax return online Most individuals use this method. 2010 tax return online Your loan is secured by a home. 2010 tax return online (The home does not need to be your main home. 2010 tax return online ) Your loan period is not more than 30 years. 2010 tax return online 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. 2010 tax return online 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. 2010 tax return online Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. 2010 tax return online (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. 2010 tax return online ) Your loan is secured by your main home. 2010 tax return online (Your main home is the one you ordinarily live in most of the time. 2010 tax return online ) Paying points is an established business practice in the area where the loan was made. 2010 tax return online The points paid were not more than the points generally charged in that area. 2010 tax return online You use the cash method of accounting. 2010 tax return online This means you report income in the year you receive it and deduct expenses in the year you pay them. 2010 tax return online (If you want more information about this method, see Accounting Methods in chapter 1. 2010 tax return online ) 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. 2010 tax return online The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. 2010 tax return online The funds you provided are not required to have been applied to the points. 2010 tax return online They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. 2010 tax return online You cannot have borrowed these funds from your lender or mortgage broker. 2010 tax return online You use your loan to buy or build your main home. 2010 tax return online The points were computed as a percentage of the principal amount of the mortgage. 2010 tax return online The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. 2010 tax return online The points may be shown as paid from either your funds or the seller's. 2010 tax return online Figure 23-B. 2010 tax return online Are My Points Fully Deductible This Year? Please click here for the text description of the image. 2010 tax return online Figure 23-B. 2010 tax return online Are My Points Fully Deductible This Year? Note. 2010 tax return online 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. 2010 tax return online Home improvement loan. 2010 tax return online   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. 2010 tax return online Second home. 2010 tax return online You cannot fully deduct in the year paid points you pay on loans secured by your second home. 2010 tax return online You can deduct these points only over the life of the loan. 2010 tax return online Refinancing. 2010 tax return online   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. 2010 tax return online This is true even if the new mortgage is secured by your main home. 2010 tax return online   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. 2010 tax return online You can deduct the rest of the points over the life of the loan. 2010 tax return online Example 1. 2010 tax return online In 1998, Bill Fields got a mortgage to buy a home. 2010 tax return online In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. 2010 tax return online The mortgage is secured by his home. 2010 tax return online To get the new loan, he had to pay three points ($3,000). 2010 tax return online 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. 2010 tax return online Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. 2010 tax return online The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. 2010 tax return online Bill's first payment on the new loan was due July 1. 2010 tax return online He made six payments on the loan in 2013 and is a cash basis taxpayer. 2010 tax return online Bill used the funds from the new mortgage to repay his existing mortgage. 2010 tax return online 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. 2010 tax return online He cannot deduct all of the points in 2013. 2010 tax return online He can deduct two points ($2,000) ratably over the life of the loan. 2010 tax return online He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. 2010 tax return online The other point ($1,000) was a fee for services and is not deductible. 2010 tax return online Example 2. 2010 tax return online 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. 2010 tax return online Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. 2010 tax return online His deduction is $500 ($2,000 × 25%). 2010 tax return online Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. 2010 tax return online This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. 2010 tax return online The total amount Bill deducts in 2013 is $550 ($500 + $50). 2010 tax return online Special Situations This section describes certain special situations that may affect your deduction of points. 2010 tax return online Original issue discount. 2010 tax return online   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. 2010 tax return online This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. 2010 tax return online Amounts charged for services. 2010 tax return online   Amounts charged by the lender for specific services connected to the loan are not interest. 2010 tax return online Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. 2010 tax return online You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. 2010 tax return online Points paid by the seller. 2010 tax return online   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. 2010 tax return online Treatment by seller. 2010 tax return online   The seller cannot deduct these fees as interest. 2010 tax return online But they are a selling expense that reduces the amount realized by the seller. 2010 tax return online See chapter 15 for information on selling your home. 2010 tax return online Treatment by buyer. 2010 tax return online    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. 2010 tax return online If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. 2010 tax return online If any of those tests are not met, the buyer deducts the points over the life of the loan. 2010 tax return online   For information about basis, see chapter 13. 2010 tax return online Funds provided are less than points. 2010 tax return online   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. 2010 tax return online In addition, you can deduct any points paid by the seller. 2010 tax return online Example 1. 2010 tax return online When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). 2010 tax return online You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. 2010 tax return online Of the $1,000 charged for points, you can deduct $750 in the year paid. 2010 tax return online You spread the remaining $250 over the life of the mortgage. 2010 tax return online Example 2. 2010 tax return online 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. 2010 tax return online In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). 2010 tax return online You spread the remaining $250 over the life of the mortgage. 2010 tax return online You must reduce the basis of your home by the $1,000 paid by the seller. 2010 tax return online Excess points. 2010 tax return online   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. 2010 tax return online You must spread any additional points over the life of the mortgage. 2010 tax return online Mortgage ending early. 2010 tax return online   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. 2010 tax return online However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. 2010 tax return online Instead, deduct the remaining balance over the term of the new loan. 2010 tax return online    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. 2010 tax return online Example. 2010 tax return online Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. 2010 tax return online He deducts $200 points per year. 2010 tax return online Through 2012, Dan has deducted $2,200 of the points. 2010 tax return online Dan prepaid his mortgage in full in 2013. 2010 tax return online He can deduct the remaining $800 of points in 2013. 2010 tax return online Limits on deduction. 2010 tax return online   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . 2010 tax return online See Publication 936 for details. 2010 tax return online Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. 2010 tax return online The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. 2010 tax return online Qualified mortgage insurance. 2010 tax return online   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). 2010 tax return online   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. 2010 tax return online If provided by the Rural Housing Service, it is commonly known as a guarantee fee. 2010 tax return online These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. 2010 tax return online Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. 2010 tax return online Special rules for prepaid mortgage insurance. 2010 tax return online   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. 2010 tax return online 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. 2010 tax return online No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. 2010 tax return online This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. 2010 tax return online See the Example below. 2010 tax return online Example. 2010 tax return online Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. 2010 tax return online Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. 2010 tax return online 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. 2010 tax return online Ryan's adjusted gross income (AGI) for 2012 is $76,000. 2010 tax return online Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. 2010 tax return online For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. 2010 tax return online 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). 2010 tax return online Limit on deduction. 2010 tax return online   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. 2010 tax return online 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. 2010 tax return online If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. 2010 tax return online 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. 2010 tax return online 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. 2010 tax return online A governmental unit is a person for purposes of furnishing the statement. 2010 tax return online The statement for each year should be sent to you by January 31 of the following year. 2010 tax return online A copy of this form will also be sent to the IRS. 2010 tax return online 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. 2010 tax return online However, it should not show any interest that was paid for you by a government agency. 2010 tax return online As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. 2010 tax return online However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. 2010 tax return online See Points , earlier, to determine whether you can deduct points not shown on Form 1098. 2010 tax return online Prepaid interest on Form 1098. 2010 tax return online   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. 2010 tax return online However, you cannot deduct the prepaid amount for January 2014 in 2013. 2010 tax return online (See Prepaid interest , earlier. 2010 tax return online ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. 2010 tax return online You will include the interest for January 2014 with the other interest you pay for 2014. 2010 tax return online See How To Report , later. 2010 tax return online Refunded interest. 2010 tax return online   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. 2010 tax return online See Refunds of interest , earlier. 2010 tax return online Mortgage insurance premiums. 2010 tax return online   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. 2010 tax return online See Mortgage Insurance Premiums, earlier. 2010 tax return online Investment Interest This section discusses interest expenses you may be able to deduct as an investor. 2010 tax return online If you borrow money to buy property you hold for investment, the interest you pay is investment interest. 2010 tax return online You can deduct investment interest subject to the limit discussed later. 2010 tax return online However, you cannot deduct interest you incurred to produce tax-exempt income. 2010 tax return online Nor can you deduct interest expenses on straddles. 2010 tax return online 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. 2010 tax return online 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. 2010 tax return online 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). 2010 tax return online Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). 2010 tax return online Partners, shareholders, and beneficiaries. 2010 tax return online   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. 2010 tax return online 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. 2010 tax return online Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. 2010 tax return online The allocation is not affected by the use of property that secures the debt. 2010 tax return online Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. 2010 tax return online You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. 2010 tax return online The interest carried over is treated as investment interest paid or accrued in that next year. 2010 tax return online 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. 2010 tax return online Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. 2010 tax return online Investment income. 2010 tax return online    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). 2010 tax return online Investment income does not include Alaska Permanent Fund dividends. 2010 tax return online It also does not include qualified dividends or net capital gain unless you choose to include them. 2010 tax return online Choosing to include qualified dividends. 2010 tax return online   Investment income generally does not include qualified dividends, discussed in chapter 8. 2010 tax return online However, you can choose to include all or part of your qualified dividends in investment income. 2010 tax return online   You make this choice by completing Form 4952, line 4g, according to its instructions. 2010 tax return online   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. 2010 tax return online Choosing to include net capital gain. 2010 tax return online   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). 2010 tax return online However, you can choose to include all or part of your net capital gain in investment income. 2010 tax return online    You make this choice by completing Form 4952, line 4g, according to its instructions. 2010 tax return online   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. 2010 tax return online    Before making either choice, consider the overall effect on your tax liability. 2010 tax return online Compare your tax if you make one or both of these choices with your tax if you do not. 2010 tax return online Investment income of child reported on parent's return. 2010 tax return online    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. 2010 tax return online 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. 2010 tax return online Child's qualified dividends. 2010 tax return online   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. 2010 tax return online However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. 2010 tax return online   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). 2010 tax return online Child's Alaska Permanent Fund dividends. 2010 tax return online   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. 2010 tax return online 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. 2010 tax return online 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. 2010 tax return online Subtract the result from the amount on Form 8814, line 12. 2010 tax return online Child's capital gain distributions. 2010 tax return online    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. 2010 tax return online However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. 2010 tax return online   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). 2010 tax return online Investment expenses. 2010 tax return online   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. 2010 tax return online 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. 2010 tax return online Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. 2010 tax return online Losses from passive activities. 2010 tax return online   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). 2010 tax return online See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. 2010 tax return online Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. 2010 tax return online Exception to use of Form 4952. 2010 tax return online   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. 2010 tax return online Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. 2010 tax return online You do not have any other deductible investment expenses. 2010 tax return online You have no carryover of investment interest expense from 2012. 2010 tax return online If you meet all of these tests, you can deduct all of your investment interest. 2010 tax return online More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. 2010 tax return online Items You Cannot Deduct Some interest payments are not deductible. 2010 tax return online Certain expenses similar to interest also are not deductible. 2010 tax return online Nondeductible expenses include the following items. 2010 tax return online Personal interest (discussed later). 2010 tax return online Service charges (however, see Other Expenses (Line 23) in chapter 28). 2010 tax return online Annual fees for credit cards. 2010 tax return online Loan fees. 2010 tax return online Credit investigation fees. 2010 tax return online Interest to purchase or carry tax-exempt securities. 2010 tax return online Penalties. 2010 tax return online   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. 2010 tax return online Personal Interest Personal interest is not deductible. 2010 tax return online Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. 2010 tax return online It includes the following items. 2010 tax return online Interest on car loans (unless you use the car for business). 2010 tax return online Interest on federal, state, or local income tax. 2010 tax return online Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. 2010 tax return online Late payment charges by a public utility. 2010 tax return online You may be able to deduct interest you pay on a qualified student loan. 2010 tax return online For details, see Publication 970, Tax Benefits for Education. 2010 tax return online 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. 2010 tax return online However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. 2010 tax return online You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. 2010 tax return online You do this by tracing disbursements of the debt proceeds to specific uses. 2010 tax return online For details on how to do this, see chapter 4 of Publication 535. 2010 tax return online How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. 2010 tax return online Where you deduct your interest expense generally depends on how you use the loan proceeds. 2010 tax return online See Table 23-1 for a summary of where to deduct your interest expense. 2010 tax return online Home mortgage interest and points. 2010 tax return online   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. 2010 tax return online 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. 2010 tax return online Attach a statement explaining the difference and print “See attached” next to line 10. 2010 tax return online    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. 2010 tax return online 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. 2010 tax return online The seller must give you this number and you must give the seller your TIN. 2010 tax return online A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. 2010 tax return online Failure to meet any of these requirements may result in a $50 penalty for each failure. 2010 tax return online 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. 2010 tax return online See Social Security Number (SSN) in chapter 1 for more information about TINs. 2010 tax return online    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. 2010 tax return online   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. 2010 tax return online More than one borrower. 2010 tax return online   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. 2010 tax return online Show how much of the interest each of you paid, and give the name and address of the person who received the form. 2010 tax return online Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. 2010 tax return online Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. 2010 tax return online   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. 2010 tax return online You should let each of the other borrowers know what his or her share is. 2010 tax return online Mortgage proceeds used for business or investment. 2010 tax return online    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. 2010 tax return online It shows where to deduct the part of your excess interest that is for those activities. 2010 tax return online Investment interest. 2010 tax return online    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. 2010 tax return online Amortization of bond premium. 2010 tax return online   There are various ways to treat the premium you pay to buy taxable bonds. 2010 tax return online See Bond Premium Amortization in Publication 550. 2010 tax return online Income-producing rental or royalty interest. 2010 tax return online   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). 2010 tax return online Example. 2010 tax return online You rent out part of your home and borrow money to make repairs. 2010 tax return online You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). 2010 tax return online Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. 2010 tax return online Table 23-1. 2010 tax return online Where To Deduct Your Interest Expense IF you have . 2010 tax return online . 2010 tax return online . 2010 tax return online THEN deduct it on . 2010 tax return online . 2010 tax return online . 2010 tax return online AND for more information go to . 2010 tax return online . 2010 tax return online . 2010 tax return online deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. 2010 tax return online deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. 2010 tax return online deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. 2010 tax return online deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. 2010 tax return online deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. 2010 tax return online deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. 2010 tax return online deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. 2010 tax return online deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. 2010 tax return online deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. 2010 tax return online personal interest not deductible. 2010 tax return online Prev  Up  Next   Home   More Online Publications