You can claim your Mortgage Interest on your home in 2018. However, due to the Tax Cuts and Jobs Act, the amount you can claim may be reduced.
For mortgages taken out after December 14, 2017, the interest on the first $750,000 is deductible. For mortgages taken out before the December date, the interest on the first $1,000,000 is deductible.
Interest on home equity loans is no longer available after 2017. This change affects interest on all home equity loans used for purposes other than to improve your current home, regardless of when the loan was taken.
One important factor to remember is that you must be able to itemize your deductions to take advantage of claiming the interest on your return. Since the standard deduction has increased for the 2018 tax year, your itemized deductions must surpass the new standard deduction to have an impact on your tax return.
The standard deductions for 2018 tax year are:
- Single - $12,000
- Married filing Joint or Qualified Widow(er) - $24,000
- Married filing Separate - $12,000
- Head of Household - $18,000
The new standard deductions for the 2019 tax year are:
- Single - $12,200
- Married filing Joint or Qualified Widow(er) - $24,400
- Married filing Separate - $12,200
- Head of Household - $18,350