Intuit Academy Tax Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Taxpayers can claim their Home Mortgage Interest Deduction when they itemize their deductions. The Home Mortgage Interest Deduction is specifically designed for taxpayers who choose to list out their qualifying expense deductions on their tax return rather than taking the standard deduction.

Itemizing deductions allows taxpayers to include various deductible expenses such as mortgage interest, property taxes, and certain medical expenses, among others. The mortgage interest must be on a qualified residence, which generally includes a primary residence and a second home, but the key aspect to note is that the deduction is only available when the taxpayer opts to itemize rather than taking the standard deduction.

Choosing to take the standard deduction means the taxpayer does not list individual deductions, and as a result, they cannot claim the Home Mortgage Interest Deduction in that scenario. The deduction is not available at any time throughout the year; it must be claimed on the tax return for the year in which the interest was paid and for the portion of the year the taxpayer owned the mortgage. This aligns with the IRS rules on how deductions are claimed and the requirements surrounding them.