Deductions & credits

It depends. Here is how your mortgage limitation is applied and i will illustrate with a screenshot in the end of this post.

There is no method in Turbo Tax that will give you an exact month by month calculation to determine the accuracy of the limitation. Instead,  it will give you an average balance of the difference between your beginning balance as of 01/01/2024 and ending balance at 12/31/2004.

Hypothetically, if we have a $800,000 balance in the beginning and $748,000 (which would include your principal paydown) as of 12/31.The average balance is $774,000 between the two amounts. Now let's assume you paid $30,000 in mortgage interest. Here is how the limitation is calculated. ($750,000/$774000)($30,000) =$29,070. If you look at IRS publication 936, page 11 uses the same worksheet as I illustrate below thus Turbo Tax follows the same method of calculating the mortgage interest limitation.