I purchased a $1.5M home in 2025 with a loan of $1.35M. My mortgage interest was $37K, but Turbotax figures my max deduction at $15K. Shouldn't it be nearly $21K?

Forum|Forum|2 months ago
April 3, 2026
1 reply
19 views

I don't have any other mortgage loans, this is my primary/only residence. I am itemizing deductions

TurboTax Online

NCperson

Level 15

@scott-eargle did you have a mortgage on a prior home that was paid off earlier in the year? what are those details? In what month did you purchase the home you now own?

scott-eargleAuthor

Level 2

No, I did not have a previous mortgage that was paid off earlier in the year…I sold my previous home in 2022. I closed on my current home last June. My builder carried my construction loan and I paid an additional $3K mortgage interest on that loan.

user17708643219

Level 6

Your mortgage interest deduction is limited if your mortgage loan is greater than $750,000 ($350,000 if Married Filing Separately). This is why you're not seeing the full mortgage interest deduction in your itemized deduction.

See the following link for more information on this, as well as how ‌mortgage interest is calculated in these situations: