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jcjohnsrud
Level 2

HELOC vs. Home Equity Loan

In the Home Loan Deduction section, TurboTax asks if the mortgage is a refinanced loan or home equity line of credit (HELOC). Mine was technically a home equity loan (and not a line of credit). Does TurboTax count the two as the same? I did get a 2019 1098 for the home equity loan. Thanks.

3 Replies
DavidD66
Expert Alumni

HELOC vs. Home Equity Loan

There really is no difference, from a tax perspective.  They are both tax deductible only if the proceeds are used to "buy, build, or substantially improve the taxpayer’s home that secures the loan."

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jcjohnsrud
Level 2

HELOC vs. Home Equity Loan

One final question on this: Since this mortgage interest is not deductible (the HELOC was used for purposes other than for the home), do I even bother uploading it to TurboTax? It looks like the standard deduction will be higher anyway. Thanks. 

MayaD
Expert Alumni

HELOC vs. Home Equity Loan

If the total of your itemized deductions does not exceed your standard deduction, you don't need to report the mortgage interest/property taxes paid on form 1098.

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