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
