Mortgage interest is an itemized deduction reported on a Schedule A. You can deduct the interest on up to $750,000 in mortgage debt, if the loan was used to buy or improve a first or second home.
State/Local income taxes or Sales Taxes plus Property Taxes are capped at $10,000 ($5,000 if filing as Married Filing Separately). Medical Expenses are only deductible if over 7.5% of Adjusted Gross Income (AGI).
The total of all itemized deductions reported on Schedule A Must be greater than the Standard Deduction for your filing status to have any tax benefit.
Standard deductions for 2018
- Single - $12,000 add $1,600 if age 65 or older
- Married Filing Separately - $12,000 add $1,300 if age 65 or older
- Married Filing Jointly - $24,000 add $1,300 for each spouse age 65 or older
- Head of Household - $18,000 add $1,600 if age 65 or older
Report mortgage interest in the Your Home section of the 2018 desktop program.
Federal Taxes>Deductions and Credits>I'll choose what I work on>Your Home>Mortgage Interest, Refinancing and Insurance
To view the Schedule A, click on Forms in the upper right the desktop program screen on a Windows based personal computer. When in Forms mode, click on Schedule A on the left side of the screen.
