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Potential tax benefits

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    Once you become a homeowner, there may be tax benefits associated with home ownership. You may want to speak with your personal tax advisor with questions or for more details on those benefits.

    These mortgage-related items may be tax deductible:

    Mortgage interest payments

    In certain cases, mortgage interest paid may be used as a tax deduction. For further details please contact your personal tax advisor or call the IRS. When required, a mortgage lender will report annually the interest paid on a qualified mortgage on IRS Form 1098 (Mortgage Interest Statement).

    Real estate (or property) taxes

    Real estate taxes are assessed annually by county or local taxing authorities to help fund public services. These taxes may be deductible for income tax purposes, so it's advisable to consult your tax advisor to understand how to apply the deduction. The amount you pay in annual property taxes can vary based on your county and the assessed value of your home.

    Mortgage (or discount) points

    Did you choose to pay mortgage points up front in exchange for a lower interest rate? If so, the amount may be deductible for the year you paid the points if they were paid toward the purchase of a primary residence. If the points are paid for a refinancing of your mortgage, they may be deductible over the life of your mortgage. Learn more about mortgage points. Our points calculator can help you determine if it makes sense for you to pay for points.

    Low-to-moderate income homeowners

    If your state considers you to be a low-to-moderate income homeowner, you may be eligible for mortgage interest tax credits for a portion of the interest that the state pays on your behalf. You must obtain a “mortgage credit certificate” from your state or local government prior to obtaining the mortgage. Contact your local government agency for this and other eligibility requirements and for more information about how the credits work.

    JPMorgan Chase does not offer tax advice. Please consult your tax advisor about the deductibility of interest and other charge

    Have questions? Connect with a home lending expert today!

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