You may claim both property taxes and mortgage interest deductions on your text return.
What is property tax?
Property tax is a tax on real estate and sometimes on other property you own. Local governments typically assess property tax, and the amount of tax is largely based on two things: where the property is and how much it’s worth.
What is the mortgage interest deduction?
The mortgage interest deduction is a tax deduction that for mortgage interest paid on the first $1 million of mortgage debt.
Homeowners who bought houses after Dec. 15, 2017, can deduct interest on the first $750,000 of the mortgage.
How to claim property tax and mortgage interest deductions?
- You'll need to itemize your taxes instead of taking the standard deduction.
- Use Schedule A to figure out your property tax deduction. You may deduct up to $10,000 ($5,000 if married filing separately) for a combination of property taxes and either state and local income taxes or sales taxes.
- Your mortgage lender sends you a Form 1098. It details how much you paid in mortgage interest and points during the tax year. Your lender sends a copy of that 1098 to the IRS, which will try to match it up to what you report on your tax return.