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