HELOC vs. Home Equity Loan

jcjohnsrud · ‎April 8, 2020

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.

DavidD66 · ‎April 8, 2020

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 · ‎April 9, 2020

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 · ‎April 9, 2020

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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HELOC vs. Home Equity Loan