Part II Deductible Home Mortgage Interest

12. Enter the total of the average balances of all mortgages from lines 1, 2, and 7 on all qualified homes. See the line 12 instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

• If line 11 is less than line 12, go on to line 13.

• If line 11 is equal to or more than line 12, stop here. All of your interest on all the

mortgages included on line 12 is deductible as home mortgage interest on Schedule A (Form 1040).

13. Enter the total amount of interest that you paid on the loans from line 12. See the line 13 instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Divide the amount on line 11 by the amount on line 12. Enter the result as a decimal amount (rounded to three places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. × .

15. Multiply the amount on line 13 by the decimal amount on line 14. Enter the result. This is your deductible home mortgage interest. Enter this amount on Schedule A (Form 1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Subtract the amount on line 15 from the amount on line 13. Enter the result. This isn't home mortgage interest. See the line 16 instructions . . . . . . . . . . . . . . . . . . . . . . 16.

14 Publication 936 (2025)

Average Mortgage Balance

You have to figure the average balance of each mortgage to determine your qualified loan limit. You need these amounts to complete lines 1, 2, 7, and 12 of Table 1. You can use the highest mortgage balances during the year, but you may benefit most by using the average balances. The following are methods you can use to figure your average mortgage balances. However, if a mortgage has more than one category of debt, see Mixed-use mort- gages , later, in this section.

Average of first and last balance method. You can use this method if all the following apply.

• You didn't borrow any new amounts on the mortgage during the year. (This doesn't include borrowing the original mortgage amount.)

• You didn't prepay more than 1 month's principal during the year. (This includes prepayment by refinancing your home or by applying proceeds from its sale.)

• You had to make level payments at fixed equal intervals on at least a semi-annual basis. You treat your payments as level even if they were adjusted from time to time because of changes in the interest rate.

To figure your average balance, complete the following worksheet.

1. Enter the balance as of the first day of the year that the mortgage was secured by your qualified home during the year (generally, January 1) . . . .

2. Enter the balance as of the last day of the year that the mortgage was secured by your qualified home during the year (generally, December

31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Add amounts on lines 1 and 2 . . . . . . . . . . . .

4. Divide the amount on line 3 by 2.0. Enter the result . . . . . . . . . . . . . . . . . . . . . . . . .

Interest paid divided by interest rate method. You can use this method if at all times in 2025 the mortgage was secured by your qualified home and the interest was paid at least monthly.

Complete the following worksheet to figure your average balance.

1. Enter the interest paid in 2025. Don't include points, or any interest paid in 2025 that is for a year after

2. However, do include interest that is for 2025 but was paid in an earlier year . . . . . . . . . . . . . .

3. Enter the annual interest rate on the mortgage. If the interest rate varied in 2025, use the lowest rate for the year . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Divide the amount on line 1 by the amount on line 2. Enter the result . . . . . . . . . . . . . . . . . . .

Example. You had a mortgage secured by your main home all year. You paid interest of $2,500 on this loan. The interest rate on the loan was 9% (0.09) all year. Your average balance using this method is $27,778, figured as follows.

1. Enter the interest paid in 2025. Don’t include points, mortgage insurance premiums, or any interest paid in 2025 that is for a year after 2025. However, do include interest that is for 2025 but was paid in an earlier year . . . . . . . . . . . . . . $2,500

2. Enter the annual interest rate on the mortgage. If the interest rate varied in 2025, use the lowest rate for the year . . . . . . . . . . . . . . . . . . . . . 0.09

3. Divide the amount on line 1 by the amount on line 2. Enter the result . . . . . . . . . . . . . . . . . $27,778

Statements provided by your lender. If you receive monthly statements showing the closing balance or the average balance for the month, you can use either to figure your average balance for the year. You can treat the balance as zero for any month the mortgage wasn't secured by your qualified home.

For each mortgage, figure your average balance by adding your monthly closing or average balances and dividing that total by the number of months the home secured by that mortgage was a qualified home during the year.

If your lender can give you your average balance for the year, you can use that amount.

Example. You had a home loan secured by your main home all year. You received monthly statements showing your average balance for each month. You can figure your average balance for the year by adding your monthly average balances and dividing the total by 12.

Mixed-use mortgages. A mixed-use mortgage is a loan that consists of more than one of the three categories of debt (grandfathered debt, home acquisition debt, and home equity debt). For example, a mortgage you took out during the year is a mixed-use mortgage if you used its proceeds partly to refinance a mortgage that you took out in an earlier year to buy your home (home acquisition debt) and partly to buy a car (home equity debt).

Complete lines 1, 2, and 7 of Table 1 by including the separate average balances of any grandfathered debt and home acquisition debt (determined by the date the debt was acquired) in your mixed-use mortgage. Don’t use the methods described earlier in this section to figure the average balance of either category. Instead, for each category, use the following method.

1. Figure the balance of that category of debt for each month. This is the amount of the loan proceeds allocated to that category, reduced by your principal payments on the mortgage previously applied to that category. Principal payments on a mixed-use mortgage are applied in full to each category of debt, until its balance is zero, in the following order.

a. First, any home equity debt not used to buy, build,

or substantially improve the home.

b. Next, any grandfathered debt.

c. Finally, any home acquisition debt.

2. Add together the monthly balances figured for b and c in (1).

Publication 936 (2025) 15

Complete line 12 of Table 1 using the figure from line 2 above.

Example 1. In 1986, you took out a first mortgage of $1,400,000. The mortgage was a 10-year balloon note and the entire balance on the note was due in 1996. You refinanced the debt in 1996 with a new 30-year mortgage (grandfathered debt). On March 2, 2025, when the home had a fair market value of $1,700,000 and you owed $500,000 on the mortgage, you took out a second mortgage for $200,000. You used $180,000 of the proceeds to make substantial improvements to your home (home acquisition debt) and the remaining $20,000 to buy a car (home equity debt). Under the loan agreement, you must make principal payments of $1,000 at the end of each month. During 2025, your principal payments on the second mortgage totaled $10,000.

To complete Table 1, line 7, you must figure a separate average balance for the part of your second mortgage that is home acquisition debt. The January and February balances were zero. The March through December balances were all $180,000 because none of your principal payments are applied to the home acquisition debt. (They are all applied to the home equity debt, reducing it to $10,000

[$20,000 − $10,000].) The monthly balances of the home acquisition debt total $1,800,000 ($180,000 × 10). Therefore, the average balance of the home acquisition debt for 2025 was $150,000 ($1,800,000 ÷ 12).

Example 2. The facts are the same as in Example 1 . In 2026, your January through October principal payments on your second mortgage are applied to the home equity debt, reducing it to zero. The balance of the home acquisition debt remains $180,000 for each of those months. Because your November and December principal payments are applied to the home acquisition debt, the November balance is $179,000 ($180,000 − $1,000) and the December balance is $178,000 ($180,000 − $2,000). The monthly balances total $2,157,000 [($180,000 × 10) + $179,000 + $178,000]. Therefore, the average balance of the home acquisition debt for 2026 is $179,750 ($2,157,000 ÷ 12).

Line 1

Figure the average balance for the current year of each mortgage you had on all qualified homes on October 13, 1987 (grandfathered debt). Add the results together and enter the total on line 1. Include the average balance for the current year for any grandfathered debt that is part of a mixed-use mortgage.

Line 2

Figure the average balance for the current year of each mortgage you took out on all qualified homes after October 13, 1987, and prior to December 16, 2017, to buy, build, or substantially improve the home (home acquisition debt). Add the results together and enter the total on

line 2. Include the average balance for the current year for any home acquisition debt that is part of a mixed-use mortgage.

Line 7

Figure the average balance for the current year of each mortgage you took out on all qualified homes after December 15, 2017, to buy, build, or substantially improve the home (home acquisition debt). Add the results together and enter the total on line 7.

Line 12

Figure the average balance for the current year of each outstanding home mortgage. Add the average balances together and enter the total on line 12. See Average Mort- gage Balance, earlier.

Note: If the average balance consists of more than one category of debt (grandfathered debt, home acquisition debt, and home equity debt), see Mixed-use mortgages, earlier, to figure the average mortgage balance.

Line 13

If you make payments to a financial institution, or to a person whose business is making loans, you should get Form 1098 or a similar statement from the lender. This form will show the amount of interest to enter on line 13. Also, include on this line any other interest payments made on debts secured by a qualified home for which you didn't receive a Form 1098. Don't include points or mortgage insurance premiums on this line.

Claiming your deductible points. Figure your deductible points as follows.

1. Figure your deductible points for the current year using the rules explained under Points in Part I, earlier.

2. Multiply the amount in item 1 by the decimal amount on line 14. Enter the result on Schedule A (Form 1040), line 8a or 8c, whichever applies. This amount is fully deductible.

3. Subtract the result in item 2 from the amount in item 1. This amount isn't deductible as home mortgage interest. However, if you used any of the loan proceeds for business or investment activities, see the instructions for line 16 next.

Line 16

You can't deduct the amount of interest on line 16 as home mortgage interest. If you didn't use any of the proceeds of any mortgage included on line 12 of the worksheet for business, investment, or other deductible activities, then all the interest on line 16 is personal interest. Personal interest isn't deductible.

16 Publication 936 (2025)

Table 2. Where To Deduct Your Interest Expense

If you did use all or part of any mortgage proceeds for business, investment, or other deductible activities, the part of the interest on line 16 that is allocable to those activities can be deducted as business, investment, or other deductible expense, subject to any limits that apply. Table 2 shows where to deduct that interest. See Allocation of Interest in Temporary Regulations section 1.163-8T.

The following two rules describe how to allocate the interest on line 16 to a business or investment activity.

• If you used all of the proceeds of the mortgages on line 12 for one activity, then all the interest on line 16 is allocated to that activity. In this case, deduct the interest on the form or schedule to which it applies.

• If you used the proceeds of the mortgages on line 12 for more than one activity, then you can allocate the interest on line 16 among the activities in any manner you select (up to the total amount of interest otherwise allocable to each activity, explained next).

You figure the total amount of interest otherwise allocable to each activity by multiplying the amount on line 13 by the following fraction.

Amount on line 12 allocated to that activity

Total amount on line 12

Example. You had two mortgages (A and B) on your main home during the entire year. Mortgage A had an average balance of $90,000, and mortgage B had an average balance of $110,000.

You determine that the proceeds of mortgage A are allocable to personal expenses for the entire year. The

proceeds of mortgage B are allocable to your business for the entire year. You paid $14,000 of interest on mortgage A and $16,000 of interest on mortgage B. You figure the amount of home mortgage interest you can deduct by using Table 1. You determine that $15,000 of the interest can be deducted as home mortgage interest.

The interest you can allocate to your business is the smaller of:

1. The amount on Table 1, line 16, of the worksheet ($15,000); or

2. The total amount of interest allocable to the business ($16,500), figured by multiplying the amount on line 13 (the $30,000 total interest paid) by the following fraction.

$110,000 (the average balance

of the mortgage allocated

to the business)

$200,000 (the total average

balance of all mortgages)

Because $15,000 is the smaller of items 1 and 2, that is the amount of interest you can allocate to your business. You deduct this amount on your Schedule C (Form 1040).

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

Publication 936 (2025) 17

Tax reform. Tax reform legislation impacting federal taxes, credits, and deductions was enacted in P.L. 119-21, commonly known as the One Big Beautiful Bill Act on July 4, 2025. Go to IRS.gov/OBBB for more information and updates on how this legislation affects your taxes.

Preparing and filing your tax return. After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/ VITA, download the free IRS2Go app, or call

800-906-9887 for information on free tax return prepa- ration.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to MilitaryOneSource ( MilitaryOneSource.mil/MilTax ).

Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant ( IRS.gov/ EITCAssistant ) determines if you’re eligible for the

earned income credit (EITC).

• The Online EIN Application ( IRS.gov/EIN ) helps you get an employer identification number (EIN) at no cost.

• The Tax Withholding Estimator ( IRS.gov/W4App ) makes it easier for you to estimate the federal income tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The Sales Tax Deduction Calculator ( IRS.gov/ SalesTax ) figures the amount you can claim if you

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On IRS.gov, you can get up-to-date information on current events and changes in tax law.

• IRS.gov/Help : A variety of tools to help you get an-

swers to some of the most common tax questions.

• IRS.gov/ITA : The Interactive Tax Assistant, a tool that

will ask you questions and, based on your input, pro- vide answers on a number of tax topics.

• IRS.gov/Forms : Find forms, instructions, and publications. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

• You may also be able to access tax information in your e-filing software.

Need someone to prepare your tax return? There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs the return,

CAUTION information required for the preparer to accurately

prepare your return and for the accuracy of every item re- ported on the return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax pre- parer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services On- line. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement; and Form W-2c, Corrected Wage and Tax Statement.

18 Publication 936 (2025)

Business tax account. If you are a sole proprietor, a partnership, an S corporation, a C corporation, or a single-member limited liability company (LLC), you can view your tax information on record with the IRS and do more with a business tax account. Go to IRS.gov/ BusinessAccount for more information.

IRS social media. Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

• Youtube.com/irsvideos .

• Youtube.com/irsvideosmultilingua .

• Youtube.com/irsvideosASL .

Online tax information in other languages. You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Over-the-Phone Interpreter (OPI) Service. The IRS serves taxpayers with limited-English proficiency (LEP) by offering OPI service. The OPI Service is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. The OPI Service is accessible in more than 300 languages.

Accessibility Helpline available for taxpayers with disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille-ready, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/ LetUsHelp .

Alternative media preference. Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille-Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/ Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order.

Mobile-friendly forms. You’ll need an IRS Online Account (OLA) to complete mobile-friendly forms that require signatures. You’ll have the option to submit your form(s) online or download a copy for mailing. You’ll need scans of your documents to support your submission. Go to IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in eBook format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks .

IRS eBooks have been tested using Apple’s iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

Access your online account (individual taxpayers only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax year.

• See payment plan details or apply for a new payment plan.

• Make a payment or view 5 years of payment history and any pending or scheduled payments.

• Access your tax records, including key data from your most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

Get a transcript of your return. With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/ Account .

Tax Pro Account. This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS OLA. For more information, go to IRS.gov/ TaxProAccount .

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/ DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Publication 936 (2025) 19

Reporting and resolving your tax-related identity theft issues.

• Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

• Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN .

Ways to check on the status of your refund.

• Go to IRS.gov/Refunds .

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February

CAUTION child tax credit (ACTC). This applies to the entire

refund, not just the portion associated with these credits.

Making a tax payment. The IRS recommends paying electronically whenever possible. Options to pay electronically are included in the list below. Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

• IRS Direct Pay : Pay taxes from your bank account. It’s

free and secure, and no sign-in is required. You can change or cancel within two days of scheduled payment.

• Debit Card, Credit Card, or Digital Wallet : Choose an

approved payment processor to pay online or by phone.

• Electronic Funds Withdrawal : Schedule a payment

when filing your federal taxes using tax return prepara- tion software or through a tax professional.

• Electronic Federal Tax Payment System : This is the

best option for businesses. Enrollment is required.

• Check or Money Order : Mail your payment to the address listed on the notice or instructions.

• Cash : You may be able to pay your taxes with cash at

a participating retail store.

• Same-Day Wire : You may be able to do same-day

wire from your financial institution. Contact your finan- cial institution for availability, cost, and time frames.

Note: The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick and easy.

What if I can’t pay now? Go to IRS.gov/Payments for more information about your options.

• Apply for an online payment agreement ( IRS.gov/ OPA ) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

• Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC .

Filing an amended return. Go to IRS.gov/Form1040X for information and updates.

Checking the status of your amended return. Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

CAUTION

It can take up to 3 weeks from the date you filed your amended return for it to show up in our sys- tem, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve re- ceived. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

IRS Document Upload Tool. You may be able to use the Document Upload Tool to respond digitally to eligible IRS notices and letters by securely uploading required documents online through IRS.gov. For more information, go to IRS.gov/DUT .

Schedule LEP. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in English until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about

20 Publication 936 (2025)

most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

———————————————————————— Below is a message to you from the Taxpayer Advocate Service, an independent organization established by Congress.

What Is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS). TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. We work to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. We are Your Voice at the IRS.

How Can TAS Help Me?

TAS can help you resolve problems that you haven’t been able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then come to TAS. Our services are free .

• TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS

problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn’t working as it should.

• To get help any time with general tax topics, visit www.TaxpayerAdvocate.IRS.gov . The site can help

you with common tax issues and situations, such as what to do if you make a mistake on your return or if you get a notice from the IRS.

• TAS works to resolve large-scale (systemic) problems that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS . (Be sure not to include any personal identifiable information.)

How Do I Contact TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:

• Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us ,

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Go to www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights for more information about the rights, what they mean to you, and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and ensure the IRS is administering the tax law in a fair and equitable way.

To help us develop a more useful index, please let us know if you have ideas for index entries. Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A Acquisition debt 2, 11-13 Alimony 6 Amortization :

Business :

Average mortgage balance, total

amount of interest otherwise allowable to each activity 16 Mortgage proceeds used for 10

Points 8 Appraisal fees 9 Armed forces :

C Clergy :

Housing allowance 5 Assistance ( See Tax help) Average mortgage balance 14

allowance 5 Cooperative housing 4, 11 Cost of home or improvements 12 Credits 5

Ministers' and military housing

Grandfathered 2, 13 Home acquisition 2, 11 Not secured by home 4 Secured 3 Deductions 2

Home office 4 Points 8, 16 Deed preparation costs 9 Divorced taxpayers 6, 13

F Fees :

Appraisal 9 Notaries 9 Points ( See Points) Figures ( See Tables and figures) Form 1040, Schedule A 10, 17 Form 1040, Schedule C or C-EZ 17 Form 1040, Schedule E 17

B Borrowers :

More than one 10 Seller-paid points, treatment by

D Date of mortgage 12 Debt

buyer 9

Choice to treat as not secured by

home 4

Publication 936 (2025) 21

Form 1040, Schedule F 17 Form 1098 10 Form 8396 5

G Grandfathered debt 2, 13 Ground rents 6

M Main home 4 Married taxpayers 5 Military housing allowance 5 Ministers' housing allowance 5 Missing children, photographs of 1 Mixed-use mortgages 15 Mortgage interest 2

Excess 9 Funds provided less than 9 General rule 8 Home improvement loans 8 Seller paid 9 Prepaid interest 5, 10 Prepayment penalties 5 Publications ( See Tax help)

Q Qualified homes 4 Qualified loan limit :

Average mortgage balance 15 Worksheet to figure (Table 1) 14

H Home 2

Acquisition debt 2, 11 Construction 5 Cost of 12 Destroyed 5 Divided use 4, 13 Grandfathered debt 2, 13 Improvement loan, points 8 Main 4 Office in 4 Qualified 4 Renting out part of 4 Sale of 5 Second 4 Time-sharing arrangements 5 Housing allowance :

allowance 5 Prepaid interest 5, 10 Prepayment penalty 5 Refunds 6, 10 Sale of home 5 Special situations 5 Statement 10 Where to deduct 17 Worksheet to figure (Table 1) 14 Mortgage Interest Statement 10 Mortgages :

Cooperative housing 11 Credit 5 Fully deductible interest 2 Home mortgage interest 2 How to report 10 Late payment charges 5 Limits on deduction 11 Ministers' and military housing

Nonredeemable ground rents 6 Redeemable ground rents 6 Rental payments 6 Renting of home :

R Redeemable ground rents 6 Refinancing 8

Grandfathered debt 13 Home acquisition debt 12 Refunds 6, 10 Rent :

Ministers and military 5

I Improvements :

Part of 4 Time-sharing arrangements 5 Repairs 12 Reverse Mortgages 6

Cost of 12 Home acquisition debt 12 Points 8 Substantial 12 Interest 2

( See als o M ortgage interest)

Assistance payments (under sec.

235 of National Housing Act) 5 Average balance 15 Date of 12 Ending early 9 Late qualifying 12 Mixed-use 15 Preparation costs for note or deed

Interest rate method 15 Refunded 6, 10 Where to deduct 17 Investments :

of trust 9 Proceeds invested in tax-exempt

S Sale of home 5 Second home 4 Secured debt 3 Seller-paid points 9 Separate returns 5 Separated taxpayers 6 Share of Interest 11 Spouses 5 Statements provided by lender 15 Stock :

Cooperative housing 11

Deductible home mortgage interest:

Average mortgage balance and total

securities 6 Proceeds used for business 10 Proceeds used for investment 10 Qualified loan limit 14, 15 Refinanced 8, 12, 13 Reverse 6 Statements provided by lender 15 To buy, build, or improve 12 Wraparound 4

amount of interest allowable 16 Mortgage proceeds used for 6, 10

J Joint returns 5

L Lender mortgage statements 15 Limits :

T Tables and figures :

(Table 1) 14 Tax credits 5 Tax help 17 Tax-exempt securities :

home (Figure C) 12 Points (Figure B) 6 Qualified loan limit worksheet

Fully deductible, determination of

Cooperative housing, mortgage

N Nonredeemable ground rents 6 Notary fees 9

O Office in home 4

(Figure A) 2 How to figure (Table 1) 14 Mortgage to buy, build, or improve

interest deduction 11 Deductibility of points 10 Home acquisition debt 11 Home mortgage interest

deduction 11 Qualified loan limit 14, 15 Line 10 10 Loans 10, 12

P Penalties :

( See al so Mor tgages)

Home improvement, points 8 Qualified loan limit 14

Mortgage prepayment 5 Points 6-10

Claiming deductible 16 Exception to general rule 8

Mortgage proceeds invested in 6 Time-sharing arrangements 5

22 Publication 936 (2025)

W Worksheets :

Qualified loan limit 14 Wraparound mortgages 4

Deductible home mortgage

interest 14

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