Mortgage expenses are really costly and many American families are finding really hard to stick to their tight budget. That is why many taxpayers want to know if they can get a deduction in their next tax return. The Internal Revenue Service is aware of this doubt many people have. Consequently, they have provided taxpayers with an Interactive Tax Assistant. In this way, they can have a quick online interview.
Before getting started there are a few things to prepare. Have them ready to see if you can get a deduction due to expenses related to your mortgage. They will allow you to check the amounts you could deduct from mortgage interest, points, insurance premiums, and so on. The first thing you will have to provide them with is the filing status you have. Or if you are married your and your spouse’s filing status.
Another thing that you will need to inform IRS Interactive Tax Assistant is your income. So, you will need to provide the ITA with all the basic income information and corresponding amounts. After that, Form 1098 might come in handy. It has to do with your Mortgage Interest Statement. There you could find the approximate amount of money you paid in interest among other things.
Who can use the IRS tool to check mortgage deductions?
U.S. citizens and resident aliens who were taxpayers for the whole tax year they want to get information from IRS. The same applies to the spouse if there were any. If you have lived abroad and did not live for the whole tax year in the United States, you cannot use it. You will have to go to the International Taxpayers webpage. Do not worry if your English level is not so good. There are several languages to choose from.
Please, bear in mind that this is just a way to find some information related to your mortgage deductions and it is you the one who puts in all the information. Therefore, you could make a mistake and the results may not be accurate. Thus, it is always advisable to double-check either with a tax consultant or an IRS agent. However, it is worth giving it a go to have an idea of what it could be like.
This process will only take up to 12 minutes, then you will see the mortgage deductions you may get. Do not start the interview and leave it unattended for 15 minutes because you will have to begin again. If you go back, the tool will not work either, so prepare everything and do not interrupt the interview. Keep going until the end. Once you click on being, and continue, select the corresponding year you want to ask for. Click on yes or no, or select the right option till you finish it. Hopefully, you will find the IRS tool helpful.