Taxes, Social Security & Retirement Benefits

Medicare, Social Security & Retirement Benefits

• Proceeds from a reverse mortgage loan may affect eligibility for some government programs. Specifically, SSI (Social Security Income) and Medicaid may be affected.  

We suggest you consult with your Medicaid & Social Security Benefits specialist.

• You are simply accessing the cash that is tied up in the value of your home.


Taxable or Non-Taxable Income?

Are proceeds from a Reverse Mortgage loan considered as Taxable Income?

  • A Reverse Mortgage Loan IS NOT Taxable Income.
  • Proceeds from a Reverse mortgage loan is from a loan and not from the sale of your house.
  • Consult with a tax advisor for your taxes.

www.irs.gov/publications/p554ch02.html

Tax Deductions

• Can I have the mortgage interest tax deductions from the proceeds (loans) from a Reverse Mortgage Loan?

No, It is not allowed as a tax deduction unless payments to the lender are made by the home owner.

http://www.irs.gov/publications/p936/ar02.html

 

All loans subject to credit approval. Mortgage financing brokered by Mortgage Miracles Happen, LLC. Equal Housing Lender.
Mortgage Miracles Happen, LLC is a mortgage broker in Arizona, Colorado, Florida, Texas & Utah. NMLS: 1289680; Arizona: 0937981, Colorado, Florida License # MBR1900, UT license # 7380298 Utah DRE; Texas TDSML Texas Recovery Fund.

Leave a Reply