Your mortgage interest deduction is reduced if your home acquisition debt is greater than $750,000 for homes purchased after December 15, 2017 or $1 million for homes before that. Your interest is also not fully deductible if it is a refinance or home equity line of credit and you used some of the money for reasons other than to acquire or improve the home.
Furthermore, points reported on Form 1098 may not be fully deductible in the first year and have to be amortized over the life of the loan. Mortgage insurance premiums may not be deductible depending on your household income.
If none of these are the reason your interest is being reduced, please report back here with more information about your 1098s to see if we can figure out what is going on.
