Deductions & credits

Yes, based on the information you provided above, it appears that the TurboTax calculation is correct.

Your mortgage interest for both of your homes (based on the limited information provided above) would be calculated as follows: 

• The mortgage limitation percentage would be .684 or 750000/1,096,379.  
• So for example if your total mortgage interest was interest was $40,141 it would be reduced as follows:  $40,141 x .684 =$27,456.  
• Your deductible interest would be $27,456.

Keep in mind: The mortgage interest deduction limits are not applied separately to each loan. If you use the house as a second home, interest on the mortgage is deductible within the same limits as the interest on the mortgage on your first home.

You can review how your mortgage interest was limited on the worksheet: Deductible Home Mortgage Interest Worksheet.

If you are using TurboTax Desktop, you can review this worksheet as follows:

1. Click on "Forms" in the upper right corner of your TurboTax screen to switch to "Forms Mode"
2. In your left panel scroll down to "Ded Home Mort"
3. Your mortgage interest limitation calculation is in Part 3 

Your TurboTax screen will look something like this:

Click here for Publication 936 (2024), Home Mortgage Interest Deduction

Click here for Deducting Mortgage Interest FAQs

Click here for Instructions for Schedule A (2024)