What is the tax deduction for home mortgage interest?
This means their home mortgage interest is more likely to exceed the federal income tax’s new, higher standard deduction of $24,800 for couples filing jointly or $12,400 for individual tax filers. Real estate agents and home builders still tout this tax deduction as an incentive to buy a home.
What happened to the home mortgage interest deduction after 2017?
After Congress passed the Tax Cuts and Jobs Act of 2017 (TCJA), the number of U.S. households claiming the home mortgage interest deduction declined from about 22% in 2017 to below 10% in 2018, according to the IRS. Fewer homeowners have written off their home mortgage interest after 2017 because the TCJA raised the standard deduction.
How does the mortgage interest deduction work in 2021?
How the mortgage interest deduction works in 2021 The mortgage interest deduction allows you to reduce your taxable income by the amount of money you’ve paid in mortgage interest during the year. So if you have a mortgage, keep good records — the interest you’re paying on your home loan could help cut your tax bill.
What is the mortgage interest deduction limit under President Trump?
Trump’s Tax Cuts and Jobs Act of 2017 lowered the Mortgage interest deduction limit from $1,000,000 to $750,000. The current tax law is scheduled to sunset in 2026.