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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14858
Experience:  15years with H & R Block. Divisional leader, Instructor
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My husband and I receive social security as our only source

Customer Question

My husband and I receive social security as our only source of income. We are homeowners with a mortgage and substantial real estate taxes NJ. How can we take mortgage interest and real estate tax deductions? Please help I hope there is a way. Tired of tossing money we don't have out the window.
Thanks Elaine
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

I understand your feeling about the deductions. You realize that SS by itself is not taxable so unless you have some other source of income you would have nothing to file to subtract the mortgage interest and real estate taxes from.

The interest and taxes would be listed on a Schedule A which would be used to reduce your taxable income. You have no taxable income so you have nothing that needs to be reduced.

Even if you did the amount would just reduce your income it would not get you a refund for federal.

NJ does have a credit for homeowners. To be eligible for a property tax deduction or a property tax credit:

  • You must have been domiciled and maintained a principal residence as a homeowner or tenant in New Jersey during the tax year; and
  • Your principal residence, whether owned or rented, must be subject to local property taxes, and property taxes must have been paid on that residence either as actual property taxes or through rent; and
  • Your rented dwelling must have its own separate kitchen and bath facilities; and
  • Your gross income is more than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return), or you (and/ or your spouse/civil union partner if filing jointly) were 65 or older or blind or disabled on the last day of the tax year. Note:Residents with gross income of $20,000 or less ($10,000 if filing status is single or married/CU partner, filing separate return) are eligible for a property tax credit only if they were 65 years or older or blind or disabled on the last day of the tax year.

File your NJ return but the credit is only $50 at most.

Expert:  Robin D. replied 1 year ago.

Could you respond below so I know you are finished