Home mortgage interest deduction

Forum|Forum|4 years ago
February 14, 2022
2 replies
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My daughter purchased her first and only home in Washington, DC in May 2021. Prior to that she lived with parents in MD. After she purchased the DC home, she lived in it on and off, but majority of 2021 she lived in parents' home in MD. Her W2 form from her employer shows the entire state withholding for MD.

Question 1: Since she partially lived in her house (partially) and has never been rented or used by others, can she qualify her house for the purpose of tax deductions such as mortgage interest, property tax and the qualified settlement expenses?

Question 2: with her living situation explained above, did the W2 correctly show the entire state withholding to the state of MD? If not, who and how this needs to get corrected?

Thanks

L

LoganathanB

1. Yes she can use mortgage interest, property tax etc for tax deductions.

2. She will have to talk to her employer and they will issue a corrected W-2 if required. If her workplace was in MD, the W-2 issued by her employer is correct.

M

Mike9241

yes, the interest is deductible subject to mortgage debt limitations. it would qualify as a vacation home/second home

MD says if you live in the state for more than 182 days you are a full-year resident

so based on your statement she has to file as a full-year resident

as to whether she has to file in DC we need more information.

where did she work - physical presence? how many days?