Consider Allocation Of Mortgage Interest Tax Deduction When Filing A Divorce Decree
In Ohio, and elsewhere, you may be able to deduct the interest paid on the mortgage on your principle residence when filing your tax return. A deduction is simply the lowering of your taxable income. For example, if you make an adjusted gross income of 70,000 dollars and have paid 10,000 dollars in mortgage interest throughout the year, you’re taxable income before other deductions would be 60,000 dollars.
Regardless of whether you’re single or married, you’re able to claim your mortgage interest deduction on your itemized return. When you file your return, you’re also required to list your filing marital status. The IRS requires that you claim your marital status in accordance with your marital status on the “last day of the year.” So you must have been married on December 31st of the year to file as “married” for that year.
There are two types of deduction schedules you’re able to file, an itemized or a standard deduction. It only makes sense to file an itemized deduction only if your deductions exceed your standard allowance, which in 2013 reached $6,100 for an individual filing as a … Read More... “Divorce and Your Mortgage Interest Tax Deduction”