No, none of the profit is taxable. Since you are married, and you lived in the home for 2 out of the last 5 years, you can exclude $500,000. You don't need to report this at all, unless you received a 1099-S. If you did receive a 1099-S, review your entries, because the cost basis should be entered ($150k plus improvements, but since the gain is under the exclusion, it won't benefit you to track down the costs of improvements). The mortgage doesn't change the facts of your gain. If you had no 1099-S, you can delete what you've entered.
Here is an article with information you may find helpful: Tax Aspects of Home Ownership: Selling a Home
