Certain age groups may benefit more from tax breaks, a new report reveals. A study conducted by the National Association of Home Builders shows younger households may gain more from housing-related tax deductions than older couples.
Younger families who have recently purchased a home are likely to carry larger mortgage debt and smaller equity than older Americans who have had years to chip away at their home loans. Additionally, families who are just starting out may have young children to support. The benefits of the deduction are greatest for those between the ages of 35 and 45. Individuals between the ages of 18 and 34 make up the second age group that benefits most from the deduction.
"Opponents falsely argue that the deduction is only for the wealthy, but it is clear that the mortgage interest deduction is also of great value to younger homeowners," NAHB Tax and Policy Issues assistant vice president Robert Dietz said. "Any tampering with this deduction would have a disproportionate impact, as a share of household income, on younger homeowners who have relatively higher mortgage interest payments."
Consumers should keep organized records of their mortgage information to make securing their housing tax deduction easier during filing season.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.