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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?

Question: 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 a loan and not from the sale of your house.

www.irs.gov/publications/p554ch02.html

Tax Deductions

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

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

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

Disclaimer: “These materials are not from HUD or FHA and were not approved by HUD or a government agency.” (ML 2014-10).