Mortgage Interest

[kehjohnson]

Hi there,

We purchased our first home in 2023 and we will have 12 months of mortgage interest to deduct in next year's taxes. Since we purchased at a high rate, this is a sizeable amount of money. Is there a limit to this deduction? 

[MelanieCPA]

Hi @kehjohnson 

Thank you for joining us today and congratulations on the purchase of your home!  If you itemize deductions,  you can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of your mortgage debt on your primary home.  If your home loan is over $750,000, your interest will be partially reduced on Schedule A. 

Your mortgage lender will send you a Form 1098 in early 2025 stating the amount of interest that you paid for 2024.  Use this form to enter the information into TurboTax.  Here are step by step instructions for entering the information into TurboTax.  TurboTax Form 1098 Mortgage Interest 

Thank you!

Melanie, CPA