What is a home loan? I only have my mortgage that i pay each month. i have never borrowed on the house. Is that a home loan?

[hoodoatts-gmail-]

how much deduction do i need to itemize?

[xmasbaby0]

A home loan is the loan--or mortgage -- that you borrowed to buy your home.   If you are making monthly mortgage payments you have a home loan.

You are posting from the Free Edition which does not support itemized deductions.   If you think you will have enough itemized deductions you would need to upgrade to at least Deluxe.   Very few people have enough itemized deductions these days.

HOMEOWNERSHIP DEDUCTIONS

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher.  Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.  

Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes. 

2020 Standard Deduction Amounts

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, private mortgage insurance (PMI) and loan origination fees (“points”) that you paid in 2020.  You should have a 1098 from your mortgage lender that shows this information.  Lenders send these in January/early February.

[gloriah5200]

 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