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Entering home mortgage interest and other information from Form 1098 in Lacerte

SOLVED•by Intuit•Lacerte Tax•156•Updated July 13, 2022

This article will help you enter most information received on a 1098. Choose a topic below for instructions.

  1. Go to Screen 25, Itemized Deductions.
  2. From the left sections, select Interest.
  3. In the Home mortgage interest & points on Form 1098 [A] (Ctrl+E) field hold down Ctrl and press E.
  4. In the table, enter the Description and Amount.
  5. Click OK once complete.
  • Enter the deductible part of home mortgage interest paid directly or indirectly to financial institutions, for which the taxpayer received a Form 1098.
    • Lacerte doesn't apply limitations to entries in this field.
  • If the taxpayer is claiming the mortgage interest credit and you have entries on Screen 38.2, EIC, Residential Energy, Other Credits (Screen 39 in 2013 and prior years) in the section Mortgage Interest Credit, Lacerte reduces the home mortgage interest by the credit.
  • Refer to the Excess Mortgage Interest input section at the bottom of Screen 25, Itemized Deductions if:
    1. The taxpayer took out any mortgage after October 13, 1987, and used the proceeds for purposes other than to buy, build or improve the home, and all of these mortgages totaled over $100,000 at any time during 2009.
      • The limit is $50,000 if Married Filing Separately.
      • An example of this type of mortgage is a home equity loan used to pay off credit card bills, buy a car, or pay tuition.
    2. The taxpayer took out any mortgage after October 13, 1987, and used the proceeds to buy, build or improve the home, and these mortgages, plus any mortgages taken out on or before October 13, 1987, totaled over $1 million at any time during 2009.
      • The limit is $500,000 if Married Filing Separately.
  1. Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Income.
  2. Scroll down to the Alimony and Other Income section.
  3. Hold down Ctrl+E in, Other income.
  4. Enter a Description.
  5. Enter the Amount.
  6. Click OK on the Other income detail window once complete.
  • Do not deduct this amount. It is a refund (or credit) for overpayment(s) of interest a client made in a prior year or years.
  • If deductions were itemized in year(s) when interest was paid, you may have to include part or all of the box 3 amount on the Other income line of your 2021 Form 1040.
    • No adjustment to a prior year(s) tax return(s) is necessary.
    • For more information, see Pub. 936 and Pub. 525, Itemized Deduction Recoveries.
  1. Go to Screen 25, Itemized Deductions.
  2. From the left section select Interest.
  3. Enter the amount in, Qualified mortgage insurance premiums paid on post 12/31/06 contracts.

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