Can You Deduct Your Home Mortgage Interest?
- Home mortgage interest can be deducted on the first $750,000 ($375,000 if married filing separately) of indebtedness.
- If the mortgage started before December 16, 2017 the limits are $1 million for married filing jointly and $500,000 if married filing separately.
- Mortgage insurance premiums has expired and can no longer be deducted.
- Home equity loan interest can only be deducted if the loan was to build, buy or substantially improve the home.
Answers to questions on how to claim home mortgage interest deductions on your current tax return.
1) Generally, if you are home mortgage interest amount does not exceed your standard deductions it would not benefit you to itemize the mortgage interest deductions. However, if the total of all your total deductions exceed the standard deductions you can itemize your deductions via the eFile tax app when you eFile IT. Itemized deductions are the reported on Schedule A for Form 1040. The home mortgage loan must be a secured debt on a qualified home. See Part I, about Home Mortgage Interest.
2) Details are Part II on Table 2 on how to deduct other interest payments.
3) If a taxpayer entered into a binding contract before December 15, 2017, in order to close on the purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, is considered to have incurred the home acquisition debt prior to December 16, 2017, and may use the 2017 threshold amounts of $1,000,000 ($500,000 for married filing separately).
4) For more details see Part II of the Home Mortgage publicationfor more information about grandfathered debt and home acquisition debt.
Additional information on how to report a home purchase or sale.
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