You can claim your Mortgage Interest on your home. 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.
Why is my Mortgage Interest not affecting my refund amount?
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 2022 tax year, your itemized deductions must surpass the new standard deduction to have an impact on your tax return.
The standard deductions for the 2023 tax year are:
- Single - $13,850
- Married filing Joint or Qualified Widow(er) - $27,700
- Married filing Separate - $13,850
- Head of Household - $20,800
How do I figure my deductible Mortgage Interest?
If your mortgage was taken out after 2017 and is more than $750,000 (total mortgages), you will need to manually calculate the amount of interest you are eligible to claim. See Publication 936 for the calculation worksheet. Enter your result in Schedule A.