Source: CBS News —
Everyone wants to save on taxes, and one of the best ways is to maximize every possible deduction.
The mortgage interest deduction used to be a mainstay for consumers, but the past few years have changed that. Some homeowners may be better off not claiming that deduction.
You can determine how much to deduct by using a tax preparation software like E-file here.
If you do want to claim it, read below to figure out how it works – and if it makes sense for you.
How to deduct mortgage interest on federal tax returns
When you file taxes, you can take the standard deduction or the itemized deduction. In 2022, the standard deduction is $25,900 for married couples filing jointly and $12,950 for individuals. The standard deduction is $19,400 for those filing as head of household.
The mortgage interest deduction is only available to those who itemize their deductions. If you take the standard deduction, you won’t be able to deduct your mortgage interest. And since the standard deduction is so high, most homeowners are better off not itemizing their deductions.