During tax season, homeowners face added stress related to deductions. A TikTok video by mortgage expert @loanladyliz highlights the importance of Form 1098, which details the mortgage interest paid. Properly utilizing this form can allow homeowners to itemize deductions, potentially lowering their taxable income and overall tax liability. This form not only acts as an annual summary of interest expenses but also plays a crucial role in tax reporting for those looking to maximize tax benefits from home ownership.
When you open up your mortgage statement this month, do not throw this form away.
One of the benefits of the mortgage interest you pay on your house is it can reduce your taxable income if you itemize deductions on your tax return.
Think of it as your annual 'interest report card'-an essential document if you plan to itemize deductions on your taxes.
This means you subtract the interest paid from your income, potentially lowering your overall tax liability.
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