topic Why is my Mortgage interest deduction less than what I paid? in Deductions & credits

Why is my Mortgage interest deduction less than what I paid?

mheroman1-hotmai — Mon, 09 Mar 2026 06:16:43 GMT

Paid $25,119 in mortgage interest and points. Program only shows a deduction for $18,119. Why the difference?

Re: Why is my Mortgage interest deduction less than what I paid?

ThomasM125 — Wed, 09 Feb 2022 23:02:16 GMT

Your mortgage interest deduction could be limited by the amount of your mortgage balance. If you purchased your home after December 16, 2017, you can only deduct the portion of your mortgage interest that applied to the first $750,000 of your mortgage. The limit is $1 million if you purchased it before that. You have to take 50% of those limits if you are filing married-separate.

Also, if any of your mortgage was used for purposes besides improvements or the purchase of your house, that portion is not deductible. Also, if you have a home office a portion of your mortgage interest may be deducted on your business schedule C, the same applies if you rent out a portion of your home, part of the deduction will show on your rental schedule E.

Re: Why is my Mortgage interest deduction less than what I paid?

mheroman1-hotmai — Wed, 09 Feb 2022 23:10:24 GMT

Thomas, neither of those situations apply. Thanks

Re: Why is my Mortgage interest deduction less than what I paid?

DaveF1006 — Thu, 10 Feb 2022 02:55:03 GMT

It depends. To clarify, did you have more than one 1098 and is the value of your present mortgage less than $750K? There is something limiting your mortgage and it usually is because of multiple mortgage statements.

Re: Why is my Mortgage interest deduction less than what I paid?

mheroman1-hotmai — Sat, 12 Feb 2022 14:27:45 GMT

I returned to the questions and re answered. I had not put in the date of the original loan which preceded 2017.

Once I did that, I got the full deduction. Thanks