Deductions & credits

DianeW777 · ‎February 18, 2021

No, because you used some of the cash from your refinanced loan; and your combined mortgage exceeds the $750,000 maximum your deduction is limited in two ways.

Any additional debt not used to buy, build, or substantially improve a qualified home isn't home acquisition debt. TurboTax will calculate the amount of allowed mortgage interest deduction based on your entry or you can choose to make the entries yourself.

To review the information and worksheets you can use this link: IRS Publication 936, page 12 (you can make the appropriate entries by selecting 'I'll enter it myself'
See the image below for the questions that must be answered for TurboTax to calculate correctly.

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