Mortgage Interest Tax Deduction Calculator for 2009, 2010
If you decide to itemize your tax return then you could be getting a bigger refund if you are a homeowner.
If you currently own a home you may deduct:
- Interest paid on your mortgage.
- Points on your mortgage.
Currently, you can deduct the interest paid on your first home mortgage and your second home mortgage. If you are married and filing jointly, the limitation is $1,000,000.00 in current home mortgage debt that is deductible.
If the interest is on a home equity loan then the limit amount is $100,000.00 if you are married filing jointly. Both amounts will be cut in half if you file separately.
To qualify for the home mortgage interest deduction you must meet the following:
- You have to itemize your tax return.
- The loan must be in your name.
- The loan is from a qualified lender.
- The loan must be on a secured debt-This means your home must be able to satisfy the debt owed.
You may not take this deduction if you have paid on a loan that is not in your name, but if you are a joint owner in the property then you may deduct the amount of interest that you have paid.
If you have paid off your loan early and received interest penalty then you may also deduct that as well as late charge interest. As long as you have paid at least $600.00 in mortgage interest, then you should receive a Form 1098 from your mortgage lender. The statement will provide you with the interest you have paid as well as points paid.
TurboTax Online offers free tax advice. Visit TurboTax Online to learn more about mortgage interest deductions.
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