@pascajams wrote:
I'm going to have to take required withdraws soon. I thought I could start pulling money out of my traditional IRA against my mortgage interest deductions.
If you mean that you and to offset the tax on IRA distributions up to the deduction you might receive for claiming mortgage interest as I think is what yiu are asking then:
It does not work that way. You don't get a "mortgage interest deduction' unless you can itemize and you only itemize if all your itemized deductions are more than your standard deduction, and if they are then the mortgage interest might be limited.
Your question is not possible to answer because we do not know all of your tax information.
This is how itemized deductions worked for 2020 - 2021 will be slightly different amounts.
For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.
Only if all itemized deductions exceed the standard deduction will it be of benefit.
Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.
The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.
Mortgage interest on loans after Dec 16, 2017 may be limited.
The Mortgage must be secured by the property to qualify.
Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.
2020 standard deductions
$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly
Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
