A mortgage is considered a loan on your home because the house was put up for collateral that you pay your payments timely and in full or you stand a risk of having the house foreclosed. Real estate taxes paid and mortgage interest paid on your principal and second home may be deductible on your Sch A if you itemize deductions. The mortgage company or lender will issue Form 1098 reporting mortgage interest paid during the year.
The amount needed to itemize deductions instead of using the standard deduction depends on your filing status. Generally it is most beneficial to take whichever gives you the most benefit.
Here are the 2020 standard deductions amounts for each filing status:
Filing Status Standard Deduction
Single $12,400
Married Filing Jointly or Qualifying Widow(er)$24,800
Married Filing Separately $12,400
Head of Household $18,650
There is an additional standard deduction of $1,300 for taxpayers who are over age 65 or blind. The amount of the additional standard deduction increases to $1,650 for taxpayers who are unmarried.
Please refer to the following link for additional information:
2020 tax year standard deduction amounts
