Tax time isn’t typically a time most of us look forward to, but as adults, we dutifully gather our documents and do the deed we’ve been called to do. If you’re a new homeowner, you could be looking at a new tax break in the form of a mortgage interest deduction.Evan Nemeroff at Realtor.com explains it this way: “the mortgage interest deduction allows you to subtract whatever you’re paying toward mortgage interest from your taxable income. And the lower your taxable income, the less you pay in taxes.” That’s the gist of it.
How do you go about this?
If you’re a homeowner and you wish to deduct your mortgage interest, you have to itemize your deduction on Form 1040, rather than take a standard deduction, according to Nemeroff.
For more on mortgage interest deductions and saving on taxes, check out realtor.com’s blog here.