Tax Day 2024: A silver lining from high mortgage interest rates: Bigger deductions on this year’s taxes
Home mortgage rates have soared in the years since the pandemic-era housing boom of the early 2020s.
Home mortgage rates have soared during the economic recovery from the pandemic, but the swelling ranks of homeowners facing steep interest payments this year may find some relief based on how they file their tax returns.
Thanks to the mortgage interest deduction, filers who choose to itemize their tax returns rather than take the standard deduction can deduct the entirety of their home interest payments in addition to taking other write-offs.
Some tax experts say that’s likely to be a more attractive option to more tax filers this season.
Atiya Brown, a certified public accountant and owner of The Savvy Accountant, said mortgage holders with with higher interest rate payments are more likely to get the most favorable returns by itemizing them, rather than taking the standard deduction, a comparison that she shows her clients.
“I definitely think that a lot more people are going to see the difference,” Brown said.
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