@MonikaK1 @DawnC
So when I do 2024 taxes next year, I want to know the principal balance as of 1/1/24?
And why do they ask this?
Heloc loan originated in July 2023 and is used for primary house. The other 1098 is primary loan that originated after 2020. Both loans combined are over $750k.
For the Heloc loan, why is it that when I enter box 1 - interest paid in 2023, my total refund increases? But as soon as I enter the $100k as the principal balance for origination loan amount in 2023, the refund goes back down? If it’s limiting the interest deduction due to the primary loan being over $750k, then adding Heloc loan should not change refund amount since anything additional would be limited and not make a difference in the total refund amount. It goes up when I enter box 1. It dramatically goes down when I enter the $100k principal balance. So confused.
