How Did Tax Reform Change the Mortgage Interest Deduction?
Tax reform increased the standard deduction that taxpayers can claim when filing their national income taxes. The mortgage interest deduction is only available when taxpayers itemize their deductions and list specific deductions, such as mortgage interest.
The mortgage interest deduction is therefore not available to taxpayers claiming the standard deduction. In addition, because the standard deduction is much higher after tax reform, it may not be as helpful for taxpayers to itemize. Thus, tax reform may have decreased the amount that a taxpayer can save by claiming the mortgage interest deduction.
When filing your taxes, check carefully how much you save when applying the standard deduction versus the itemized deduction, taking into account all of the various deductions you might get when itemizing. It may still be beneficial overall to itemize, but the benefits you get for itemizing instead of choosing the standard deduction will be smaller than they were because of the big increase in standard deduction.
- What Sort of Tax Benefits Are Available to Homeowners?
- How Do I Calculate the Amount of My Mortgage Credit Certificate?
- Can I Deduct My Mortgage Interest?
- What Other Aspects of My Mortgage Can I Deduct?
- Is There a Limit to Mortgage Tax Deductions?
- What Types of Loans are Eligible for a Deduction?
- How Do I Calculate the Mortgage Tax Deduction?
- What Is a Mortgage Credit Certificate?
- How Can I Qualify for a Mortgage Credit Certificate?