Q&A: How much mortage interest can I deduct in my income tax return for the year 2005 in Texas?

Posted on Nov 28, 2012 in Stated Income Loans

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My husband and I are currently trying to fix our credit. We are also shopping for a home loan. We live in michigan and I am looking for mortgage companies willing to work with people with bad credit.

Best answer:

Answer by MadMan
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What do you think? Answer below!
Question by nahuatl71: How much mortage interest can I deduct in my income tax return for the year 2005 in Texas?
I am using turbo and I enter all my income paid for the mortgage loan, medicine but when it comes back it shows less than what I entered. So I wonder if the mortage interest paid is 100% or is it an average up to some amount. At the end of the process my return is the same as what it was last year but the difference is that last year I did not own a house. So I think my refun should be more.

Best answer:

Answer by TYSONBULLY
Deduct all of your mortgage interest. You should have gotten a tax statement from your mortgage company, use that #

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2 Comments

  1. Mortgage Interest is deducted on Schedule A (if you can itemize). If the mortgage interest is less than your standard deduction ($ 5,000 for singles under 65 years of age and $ 10,000 for married couples filing jointly with both under 65 years of age), it will just use your standard deduction; otherwise, you should be able to deduct it.

    Also, if you’re Adjusted Gross Income (AGI) is above certain amounts, it will phase out itemized deductions and force you to take the standard deduction.

    Hope this helps.

  2. All of the mortgage interest that you pd for that yr is deductible. But in order for it to show up you have to be able to get on a schedule A. In order for the schedule A to be beneficial you have to have more deductions than what the standard deduction is. You can also take the points you pd for the home, property tax, Medical that you have (Medical has to be 7.5% of your income before you get the first dollar)Cash and non cash donations, any unreimbursed employee exp if you have any (that is 2% of your income before you get the first dollar) Tax prep for last year. So if all of those things are not more than your standard deduction you will not see a difference because the program is designed to give you which ever is a bigger deduction. If you did not list all of the things that you can on the schedule A then go back and see if it helps. The standard deductions are listed on page 2 of the 1040.