Who Is using the Mortgage Interest Deduction MID
One of the benefits of owning a home is that you get a Mortgage Interest Deduction. Here is a brief snapshot of who's using Mortgage Interest Deduction.
Those households headed by persons between 35 and 45 years of age are the largest takers of the mortgage interest deduction, this is from National Association of Realtors research. Based on Internal Revenue Data from 2008, these households take an annual average deduction of $13,829, compared with $9577 for households headed by persons 65 and older and $8799 for households headed by persons under 26. Reasons for this? Typically, home owners in the 35-45 bracket still have many years left to go on their mortgage, and a relatively high proportion of their monthly payments goes to interest. Also, their houses tend to be larger than those of the very youngest home owners, so their mortgage and interest are higher.
Here is the breadown of Mortgage Interest Deduction by Age.
All returns $12,160
Under 26 $8799
26-35 $12,300
35-45 $13,829
45-55 $12,374
55-65 $11,099
65 and over $9,577
Source, NAR reserach using 2008 IRS data.
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