topic I paid about $14,000 in mortgage interest, yet Turbo tax is only deducting about $4,000? What's going on? in Deductions & credits

I paid about $14,000 in mortgage interest, yet Turbo tax is only deducting about $4,000? What's going on?

libbijon — Sat, 20 Mar 2021 18:07:51 GMT

Re: I paid about $14,000 in mortgage interest, yet Turbo tax is only deducting about $4,000? What...

LenaH — Sat, 20 Mar 2021 20:51:28 GMT

It depends. Your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.

Please also see Deducting Mortgage Interest FAQs to determine if any special situations apply to your tax situation.

For more details, see IRS Publication 936: Home Mortgage Interest Deduction.

Re: I paid about $14,000 in mortgage interest, yet Turbo tax is only deducting about $4,000? What's going on?

SweetieJean — Sat, 20 Mar 2021 20:57:09 GMT

Most homeowners can deduct all their mortgage interest. However, if your mortgage debt is above a certain amount, the deductible interest is proportional to the amount of your mortgage that falls within the threshold.

For mortgages taken out after October 13, 1987, and before December 16, 2017, mortgage interest is fully deductible up to the first $1,000,000 (married Joint) of mortgage debt. For mortgages taken out after December 15, 2017 , the threshold has been lowered to the first $750,000 (married Joint) of mortgage debt.

Be sure to indicate that mortgage is secured by the home.