Qualifications

• Before you can take the mortgage interest deduction on your taxes, you have to be eligible to do so. The first requirement is that you have to itemize your tax deductions. This is a "below the line" deduction, which means those who take the standard deduction cannot claim this deduction. Another requirement is that the interest has to be paid on a mortgage for a house in which you have ownership interest.
  
  

Low Income

• Low-income individuals tend to take the standard deduction, because they do not have enough deductions to justify itemizing. As a result, low-income homeowners typically do not get to take advantage of the home mortgage interest deduction. Instead, they take the standard deduction and bypass this deduction. While income is not the only factor in whether you can itemize your deductions, it tends to play a big role.
  
  

Tax Savings

• The mortgage interest tax deduction can save homeowners a substantial amount of money on their income taxes. During the early stages of a mortgage, the vast majority of a mortgage payment is interest payment. As a result, you can deduct most of your mortgage payment from your taxable income for the first several years you own your home. When you rent or do not itemize your taxes, you miss out on all of the savings.
  
  

Controversy

• This tax deduction has been the subject of much debate over the years. In a November 2010 article in "The Atlantic," Derek Thompson reports that some people believe those who can afford to buy homes should not be given an extra subsidy from the federal government. These individuals believe the law for this deduction should be amended or altered. On the other hand, many people who bought homes did so with the expectation of being able to take this deduction.