The Home Mortgage Interest Tax Deduction

lendingtree 5 The Home Mortgage Interest Tax Deduction This graphic brought to you by LendingTree. Except where noted, research data courtesy of the National Association of Home Builders. The home mortgage interest tax deduction (MID) provides thousands of dollars in tax savings to American homeowners. It allows homeowners to deduct the 34.6 interest they pay on their home million Americans claim the MID mortgage while calculating their annual federal income tax, up to a total principal amount of $1 million per couple. (Source and Date: 2009/ Joint Committee on Taxation) 3 How your deduction stacks up? WA MT VT ME ND OR ID NH MA RI CT NJ SE bC SD WI NY WY MI 1O PA NV NE IL IN ОН UT CO CA KA VA MD MO KY NC TN AZ OK NM AR SC MS AL GA TX LA ARCTIC OCEA FL 100 mi AK THE BAHAMA GULF OF MEXICO 300 mi REFERENCES Below Average ($7916 or less) Average within $1000 of national average ($7917 - $9917) Above Average ($9918 or more) NATIONAL Total Mortgage Interest Deducted: $337,679 MILLION | Average Mortgage Interest Deduction: $8,917 ок 10 ND ME WI wV AR KY VT MS Он MT KA NE IN PA MO LA SC Total Mortgage Interest Deducted* $1,915 $2,060 $260 $1,041 $5,351 $707 $1,393 $2,982 $529 $1.464 $10,915 $718 $2,140 $1,380 $5,319 $10,801 $4,851 $2,356 $3,759 nterest Deduction $5,710 $6,754 $6,808 $6,888 $6,929 $6,976 $6,998 $7,051 $7,183 $7,284 $7,291 $7,294 $7478 $7,568 $7,594 $7,635 S7,694 $7,761 $7,874 Average Mortgage * IN MILLIONS RI ID SD MI NC NM UT MN AL NH DE TN OR GA TX NY AK NJ WY IL MA rest Deducte $1,189 $1,335 $363 $11,499 $9,204 $1,529 $2,881 $7,249 $3,895 $1,657 $1,070 $4,184 $4,761 $10,612 $16,015 $19,709 $676 $12,930 $350 $15,854 $9,378 Average Mortgage Interest Deduction $8,037 $8,046 $8,387 $8,400 $8,545 $8,742 $8,992 $8,997 $9,009 $9,014 $9,040 $9,052 $9,072 $9,072 $9,379 $9,563 $9,589 $9,767 $9,772 $9,878 $9,902 * IN MILLIONS Other Areas* MD FL ст VA AZ WA CO NV DC HI CA For a typical home owner with $54,000 in taxable income and a $180,000 mortgage, the deductions for mortgage interest and real estate taxes are worth $7,500 during the first five years of homeownership. Total Mortgage Interest Deducted* $9,721 $17,593 $5,619 $11,304 $7,650 $9,080 $8344 $3,588 $840 $1,838 $887 $64,934 Average Mortgage Interest Deduction $9,998 $10,050 $10,069 $10,155 $10,646 $11,223 $11,247 $11,552 $11,759 $12,766 $12,968 $14,217 (Source: NAHB research) * IN MILLIONSS 3 Which income and age brackets using the MID? Share of Returns (Source and Date: NAHB analysis of 2008 IRS data) 30% $50K under $75K $20K under $50K 25% + 25% 25% 20% 2% 7%. under $20K 15% 19% $200K over 10% $75K under $100K 22%- $100K under $200K 5% 0% 18 to under 35,35 to under 45 45 to under 555 to under 65 Adjusted Gross Income | Share of Returns (Source and Date: NAHB analysis of 2008 IRS data) Age 65 and over IFIC OCEAN ITLANTIC