Things You Need to Know About the Mortgage Interest Tax DeductionMarch 10, 2023
Paying taxes is the responsibility of a good taxpayer. However, you know that taxes can be a financial burden, mostly when you are not doing well financially. To ease the financial burden, IRS allows you to claim tax breaks. Tax breaks aim to help lower your total taxes, and in some cases, you can even get a refund. One of the deductions citizens have been enjoying is the mortgage interest deduction. Here are some things you need to know about this deduction.
What is a mortgage interest deduction?
Just from the name, this is a deduction that aims to help homeowners pay less taxes every year. Therefore, this is a common itemized deduction that allows qualified homeowners to deduct the interest they pay on any loans used to purchase, build or renovate a home, from taxable income. Also, the mortgage interest deduction can also be claimed for second homes and vacation residences. The main aim of mortgage interest tax deduction is to lower the amount of tax you owe the government.
How to claim mortgage interest deductions?
Mortgage interest deductions even after the changes, remains an itemized deduction. For that reason, in order to benefit from it, you need to ensure that the standard deduction is not worth more that the itemized deductions. But all in all, you can claim the mortgage interest deduction online through tax software like H&R Block. The online software will help you claim what you deserve, and enjoy a tax break like other homeowners in the country.
Is it worth to itemize deductions today?
Recently, TCJA doubled the standard deduction. On the other hand, it lowered the limits and changed the criteria of claiming mortgage interest deduction. For that reason, many taxpayers will consider standard deduction instead of itemized deductions. Due to the lower limits and strict terms, you should also take standard reduction because it is not worth itemizing deductions. It can also help you save time.
Why H&R Block for online tax filing?
Filing taxes manually is complicated, and can be expensive when you hire tax specialists and accountants. For that reason, you should avoid such a complicated way when filing your tax returns. Filing your taxes online is the smartest and most convenient way. H&R Block is the leading online tax software you can trust for tax return preparation and filing.
H&R Block online tax filing is convenient, and will ensure all tax credits and deductions you are entitled to, including mortgage interest deduction, are deducted from the total tax you owe the government. As a result, you will pay lower tax or even get a tax refund to take care of some bills. Also, the software comes with four products ideal to complete your taxes, even those complicated ones.
Mortgage interest deduction is one of the many deductions and credits you can claim in order to pay less tax when filing your taxes. The mortgage tax break, like other tax reliefs, are to help taxpayers pay less tax or get a maximum a refund in case they have paid more taxes through withheld taxes. To help you file taxes easily and accurately, use H&R Block. The online tax software is easy to use, and in just a few steps, you will prepare and file your taxes.