• Agency: U.S. Internal Revenue Service (IRS)
• Status: Currently Available

The Mortgage Interest Deduction program is an itemized deduction on the federal income tax for a household that owns at least one home. The program acts as a subsidy to individual homeowners, as it reduces the amount of taxable income by the annual interest paid in order to own a home. The IRS defines home mortgage interest as any interest paid on a loan secured by one’s first or non-rental property second home. Eligible loans from which interest might be deducted include a mortgage, second mortgage, line of credit, or home equity loan. There are other federal and state tax deductions for qualified homeownership-related expenses.