Is My Mortgage Interest Tax Deductible?

• Generally, you can deduct your mortgage interest by filing Form 1040 with the IRS and itemizing your deductions on Schedule A. If you are not legally liable for the loan, in other words, if you are paying the interest for someone else's loan, you cannot deduct it. Your home must be your primary residence or second home to qualify for deductions.
  
  The percentage of your mortgage interest you can deduct depends on what category your mortgage fits into. Your mortgage interest is fully deductible if it fits into one of the following:
  
  1.If your mortgage was taken out before Oct. 13, 1987.
  2.If your mortgage was taken out after Oct. 13, 1987, and used to buy, build or improve your home. This category only applies if your total mortgage amount is less than $1 million ($500,000 if married filing separately).
  3.If your mortgage was taken out after Oct. 13, 1987, and was not used to buy, build or improve your home. In this case, your total mortgage must be less than $100,000 ($500,000 if married and filing separately).
  
  If your home does not fit into any of these categories, be sure to check out Publication 936 on the IRS website, as there are numerous regulations for special cases.
  
  

Get Free Help with Tax Questions

• If you have a special case that you're unable to figure out, there are several ways to get free advice and assistance for your tax questions. Recorded tax information can be accessed 24/7 toll-free by calling (800) 829-4477.
  
  If you have a complicated tax issue that hasn't been resolved by the IRS, you may be eligible for help through the Taxpayer Advocate Service. TAS is an independent unit of the IRS that provides specialized attention from a tax professional. According to the IRS, this professional will "listen to your problem" and "stay with you every step of the way until your problem is resolved." However, you have to qualify for this service by going through the normal channels first. If the IRS has not resolved your problem in 30 days as promised, or if you are experiencing economic hardship as a result of a tax problem, you may be able to turn to them for help. Contact TAS toll-free at (877) 777-4778 or TTY/TDD (800) 829-4059.