How much mortgage interest can I deduct on my taxes?

You can deduct some amount of mortgage interest from your taxable income to lower your taxes. But this may not be the best option for everyone.

You’ll need to itemize your deductions to get this benefit instead of getting a standard deduction. This only applies to debt for buying, building, or improving your first or second home. For single people, it is applicable on the first $750,000 of mortgage debt. Married couples filing separately have a limit of 375,000. Homeowners who have bought houses before December 16, 2017, can claim deductions on the first $1 million of the mortgage ($500,000 for married couples filing separately. 

What isn’t included in the deductions include:

• Homeowners’ insurance 
• Extra loan payments you make toward the mortgage 
• Title insurance
• Settlement costs
• Deposits, down payments, and earnest money
• Reverse mortgage accrued interest
• Mortgage insurance payments