Question about deducting primary home mortgage interest on tax return?

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For example If I have paid $ 3,450. interest to the bank for my home mortgage (primary residence) What that mean? Is it means IRS will minus this money (3450) from my earned income? OR something else.. Thanks

Update:

Thanks everyone

I am married with three kids.I had my mortgage in June 2011. What happen if I don’t reach 58 limit as a single person for example. I have property tax about 16.

4

✅ Answers

  • The amount $3,450 is not enough for you to itemize because the standard deduction for a single person is $5,8 for this year 2011. That amount must be over the standard deduction for itemizing.

    Have you had anything else? Property taxes? Real estate taxes? Charity?

    You should look at Schedule A to know more if you would want to itemize.

    http://www.irs.gov/pub/irs-pdf/f1040sa.pdf

  • She deducts all the loan activity on her time table A. Then she provides lower back 0.5 the activity as activity earnings on her return – that nets to 0.5 the activity deducted on her return. You deduct 0.5 of the activity in it sluggish table A – online 11 as loan activity no longer on a 1098.

  • If you itemize deductions, you put that amount on Schedule A.

    If you are single, you can only deduct the amount ABOVE $57 from your taxable income. You get to add state income taxes and property taxes to Schedule A too. Most people don’t have enough to make itemized deductions worthwhile.

    Source(s): http://www.irs.gov/publications/p17/ch20.html

  • mortgage interest is included in the amounts you can claim on sch A

    when this exceeds your standard deduction this also reduces your AGI for tax purposes

    it does not refund you the amount you paid for interest but it reduces your tax liability

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