If you’re like most american home owners that have deducted their mortgage interest every year, you better read this article. With the new tax bill and the new standard deduction, it may not be beneficial anymore. As always, speak to you tax professional.
“Itemized deductions have allowed taxpayers, if they qualified, to reduce their taxable income by claiming a variety of deductions. These include mortgage interest, state and local income or sales taxes, property taxes on their homes and cars, charitable contributions, and more. Traditionally, about 30% of taxpayers have itemized deductions (on Schedule A) because their total itemized deductions were more than the standard deduction, based on their filing status.
However, the new Tax Cuts and Jobs Act (TCJA) eliminated or restricted many itemized deductions beginning in 2018, and raised the standard deduction. That means fewer taxpayers are likely to itemize.”
Read the rest of the story here: 3 Changes to Itemized Deductions Under Tax Reform Bill