Tax Reform Update: You can only deduct interest on the first $375,000 of your mortgage if you bought your home after December 15, 2017.

Form 1098 Mortgage Interest Statement in the TaxAct^® program does not automatically account for a mortgage amount that is over the deduction threshold amount. You must manually calculate the amount of mortgage interest that is deductible and enter that in the appropriate section of the program.

To enter the information from IRS Form 1098 in the TaxAct program:

1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Interest expenses.
3. Continue with the interview process to enter all of the appropriate information.
4. On the screen titled Did you receive Form 1098 reporting mortgage interest?, click Yes if the mortgage interest was reported on Form 1098.
5. On the screen titled Form 1098: Enter the mortgage interest and points you paid in 2020, enter the 1. Mortgage interest amount, then click Continue.

If Box 10 of Form 1098 reports real estate (property) taxes paid, enter those taxes as follows:

1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Taxes paid.
3. Continue with the interview process to enter all of the appropriate information.
4. On the screen titled Enter any other deductible taxes paid in 2020, enter something such as "Real estate (property)" for the Type of tax, enter the qualified real estate tax Amount paid in 2020, then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.