Are Reverse Mortgages taxable?

Reverse mortgage proceeds are not taxable because they’re not considered income, but rather, a loan.

Reverse mortgages do not affect entitlement programs such as Medicare. However, certain need-based government aid programs, such as Supplemental Security Income (SSI) and Medicaid, may be affected. Additionally, your eligibility to participate in any real estate tax deferral program offered by your city or county may be impacted. This information is not intended to provide any type of advice, and we recommend you consult with your Medicare, Social Security or Medicaid program administrator to determine the specific rules.