Mortgage interest you pay on loans up to $1 million ($500,000 Married Filing Separately) is tax deductible, provided you used the money to buy, build or improve your
home and the loan is secured by your home.
Plus, the interest you pay on loans secured by your
home and used for a purpose other than to buy, build or improve your
home is tax deductible for loans up to $100,000 ($50,000 Married Filing Separately). The limit may be reduced depending on the market value of the
home at the time you take out the loan. Use equity lines of credit wisely. If you fail to make the payments, you put your
home at risk.
If your income meets the requirements and your state or local government issued you a mortgage certificate credit, you may be eligible to claim a tax credit (the mortgage interest tax credit) based on the amount of interest you paid. If you claim the tax credit, you must reduce your interest tax deduction by the amount of the credit.
Do Your Taxes Online and Save!
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