Mortgage Interest

[jsorrentino12]

Hello,

I live in New Jersey, and I am a homeowner.  Does my mortgage interest need to be entered on my taxes and where should it be entered?

Thank you.

Josephine

[Cynthiad66]

It depends Josephine.  You enter the mortgage interest deduction if you itemize your deductions.  However, if you do not have enough deductions to itemize then you claim the standard deduction.

Claiming the standard deduction is certainly easier. To itemize, you need to keep track of what you spent during the year on deductible expenses like out-of-pocket medical expenses and charitable donations. You also need to maintain supporting documentation, such as receipts; bank statements; medical bills; acknowledgment letters from charitable organizations; and tax documents reporting the mortgage interest, real estate taxes, and state income taxes you paid during the year. Then you need to determine whether your available itemized deductions exceed the standard deduction for your filing status.

That might sound like a lot of work, but it can pay off if your total itemized deductions are higher than the standard deduction.

For 2023, the standard deduction numbers to beat are:

• Single taxpayers: $13,850
• Married taxpayers filing a joint return: $27,700
• Heads of household: $20,800

Those are the numbers for most people, but some get even higher standard deductions. If you're 65 or older or blind or both, you may increase your standard deduction by the amount listed below.

Should I Itemize My Deductions or Take Standard Deductions

If you enter all of the information requested by TurboTax, the software will automatically choose the best option for you.

[jsorrentino12]

Thanks for the response.

Can you please direct me as to where or the schedule for itemizing deductions?

[VolvoGirl]

Enter Mortgage Interest, Points Paid & Property Tax  under

Federal Taxes (Personal in Home & Business version)

Deductions and Credits

Your Home

Mortgage Interest - Click the Start or Update Button

OR Property Taxes - Click the Start or Update Button

Don't enter the bank or broker name and don't try to import it.  It is just as fast and easy to manually enter it.  At the bottom pick -  Change How I enter my Form

Then on the next screen pick I'll Type it in Myself

Then All your total itemized deductions have to be more than the standard deduction to get any benefit from them. Just enter all your itemized deductions in. The program will use whichever is larger - standard or itemized.

For 2023 the standard deduction amounts are:

Single 13,850 + 1,850 or 65 and over or blind

HOH 20,800 + 1,850 for 65 and over or blind

Joint 27,700+ 1,500 for each 65 and over or blind

Married filing Separate 13,850 + 1,500 for 65 and over or blind