A report compiled by real estate website Trulia suggests that men, especially those in higher tax brackets, tend to take advantage of the mortgage interest tax deduction more than homeowners who are women or part of a minority group. This report, which concurs with prior reports on the same topic, illustrates how large the gap is between men and women in addition to Caucasians and minorities.
The mortgage interest tax deduction is a deduction the IRS allows homeowners to make on their personal income taxes. They may deduct the full amount of interest paid on a mortgage for real estate that serves as either their primary or secondary home. Trulia reported that homeowners saved around $80 billion in taxes in 2013. Generally, this deduction benefits those who have an adjusted gross income of more than $200,000 and who itemize their deductions.
Trulia’s report analyzed data related to 2013 tax deductions and homeowners with a mortgage. The results showed that white taxpayers who filed as head of household were three times more likely to take the deduction over black heads of household. Men were 31 percent more likely to take the deduction over women overall, although once the study factored in income and age, that percentage fell to 10.5. This adjustment has to do with the fact that women who identify as head of household are more often than not single and had a lower income than married men who claimed head of household status.
Moneytips can help you refinance your existing home loan.