What financial documentation is necessary for a taxpayer to claim the Mortgage Interest Deduction?

To claim the Mortgage Interest Deduction, a taxpayer must provide Form 1098 from the lender. This form is a crucial piece of documentation as it specifically shows the amount of mortgage interest paid by the taxpayer during the tax year. The lender is required to issue this form to any borrower who paid $600 or more in interest, helping to ensure that taxpayers accurately report their deductible interest on their tax returns.

Having this form is essential because it not only verifies the amount of interest that can be deducted but also confirms that the taxpayer is legally obligated to the mortgage, which is a requirement for claiming the deduction. The Mortgage Interest Deduction is subject to specific rules, including limits based on the amount of the mortgage and the taxpayers' filing status, further underscoring the importance of accurate documentation provided through Form 1098.

While proof of income, tax returns from previous years, and bank statements might be relevant for other financial or tax reporting purposes, they do not specifically fulfill the requirement for documenting mortgage interest to claim this particular deduction.