How much deductible for mortgage interest

Look in your mailbox for Form Your mortgage lender sends you a Form in January or early February. It details how much you paid in mortgage interest and points during the tax year. Your lender sends a copy of that to the IRS, which will try to match it up to what you report on your tax return.

Learn more about Form here. Keep good records. The good news is that you may be able to deduct mortgage interest in the situations below under certain circumstances:. The bad news is that the rules get more complex. Check IRS Publication for the details, or consult a qualified tax pro. Be sure to keep records of the square footage involved, as well as what income and expenses are attributable to certain parts of the house.

Itemize on your taxes. That can also mean spending more time on tax prep, but if your standard deduction is less than your itemized deductions, you should itemize and save money anyway. Limits apply for taxpayers who do take mortgage-interest deductions, although they are more generous for homeowners with older mortgages. For new mortgages issued after Dec.

The law now prohibits interest deductions for such debt unless the funds are used for certain types of home improvement.

For more information and a list of improvements that are eligible, see IRS Publications and Interested in knowing more before you file your taxes? All Rights Reserved. Most homeowners can deduct all of their mortgage interest.

For mortgages that were taken out before December 16, , the limits are higher. The same goes for borrowers who were under a binding contract by the December 16th deadline and closed before April 1, Qualifying mortgages include those used to buy or improve a first or second residence.

Mortgage Tax Deduction Calculator. Who qualifies for this deduction? To qualify for a home mortgage interest tax deduction, homeowners must meet these two requirements: You filed an IRS form and itemized your deductions.

The mortgage is a secured debt on a qualified home which you own. Compare mortgage rates Fixed Rates 10 year fixed 10 year fixed refi 15 year fixed 15 year fixed refi 20 year fixed 20 year fixed refi 30 year fixed 30 year fixed refi 30 year FHA 30 year FHA refi.