Homebuyers How to Claim Your Mortgage Interest Deduction

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If you're a homeowner, you may be eligible for tax relief in the form of a mortgage interest deduction. This deduction allows you to deduct the interest you pay on your mortgage from your taxable income, which can reduce your overall tax liability. Here's how to claim your mortgage interest deduction:

1. Determine if you qualify: To claim the mortgage interest deduction, you must itemize your deductions on your tax return. This means that you can't claim the standard deduction. Additionally, your mortgage must be a secured debt on a qualified home, which generally includes your primary residence and a second home.
2. Gather your documents: To claim the deduction, you'll need to have documentation of your mortgage interest paid. Your lender should provide you with a Form 1098, which shows the total amount of mortgage interest you paid during the year.
3. Calculate your deduction: Once you have your Form 1098, you can calculate your mortgage interest deduction. The deduction is limited to the interest you paid on up to $750,000 of mortgage debt if you bought your home after December 15, 2017. If you bought your home before that date, the limit is $1 million.
4. Include the deduction on your tax return: To claim the deduction, you'll need to include it on Schedule A of your tax return. Make sure to follow the instructions carefully and include all necessary documentation.

It's important to note that the mortgage interest deduction is just one of many tax benefits available to homeowners. You may also be eligible for deductions related to property taxes, home office expenses, and home improvements. Be sure to consult with a tax professional or use tax software to ensure that you're claiming all the deductions you're entitled to.