Tag Archives: mortgage interest

Taxes as a Homeowner

So you finally purchased your home, and are excited to have something to call your own. In addition to wonderful new living space, you also get some pretty great tax breaks as well. In some cases, certain tax incentives can even be applicable to your second home. And if you’ve been in your home for […]

Homeowner Deductions

Do you own your own home? If so, are you aware of the deductions you can take at tax time? There are three major deductions available to homeowners when they file a return that can mean big savings when it comes to taxes. Mortgage Interest: if you have a mortgage for either your first or […]

Three M’s to Know at Tax Time

Mortgage Interest Mortgage interest of up to $1 million in debt, incurred while purchasing or building your primary residence or second home is eligible to be deducted at tax time. If you borrow from a home-equity line of credit, any interest you pay on up to $100,000 can be deducted, no matter how you spend […]

The one thing in life that’s guaranteed is that you’ll have to pay taxes. Thankfully, though, the government opts not to force you to pay on your entire amount of income. When determining the amount of income for which you shall be taxed, the IRS uses two determinations of deductions: Above the Line, and Below […]

Taking the standard deduction may seem like the easier option when filing your taxes. However, it may not be the most valuable to you in the long run. Itemizing your deductions may lower your taxes owed. You can determine which method works best for you by figuring out the amount of each deduction method. In […]

There are two methods you can use to deduct expenses at tax time: you can either itemize or utilize the standard deduction. Deductions decrease your taxable income, lowering your tax threshold. The standard deduction amount is different depending on factors such as filing status, taxpayer age, and income levels, and is revised annually. There are […]

What are Itemized Deductions?

Chosing to itemize your deductions at tax time can prove beneficial in many ways. When you itemize, you list all of your expenses and amounts paid on Schedule A of Form 1040 when you file your tax return. These expenses can range from medical or dental care and state or local income tax, to mortgage […]

Deductible Interest

When you complete Schedule A for your federal tax return, you are able to deduct any home mortgage interest in two categories: Loan interest for monies used to significantly improve a primary or secondary residence, which is backed by the property. The loan must not exceed $1,000,000. Loan interest that is secured by your home, […]

What is the Form 1098?

At tax time, if you have a mortgage loan on your home you should expect to receive a Form 1098 (Mortgage Interest Statement) from your lender. The Form 1098 reports the amount of interest you paid throughout the year. You aren’t required to file this form with your taxes, because a copy will automatically be […]

Often, you’ll have to choose between itemizing your deductions and taking a standard deduction when you are filing your taxes. You should determine what your deductions amount to using both methods, then choose which option decreases the amount of tax that you owe. Typically, the method that leads to the largest deduction will provide the […]