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New Member
posted Mar 8, 2025 10:02:53 AM

If I have a Heloc and I used to purchase a house, can I deduct the interest? If so, where in TurboTax is that option?

how to deduct home equity line of credit?

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2 Replies
Expert Alumni
Mar 8, 2025 10:13:12 AM

Yes.  You qualify to deduct HELOC interest, because through 2025 is the HELOC must be for the purpose of buying, building, or substantially improving your home. 

 

Since you are able to meet the conditions of deducting the HELOC interest, you can enter the amount where you would have entered it, had you received a 1098.  In TurboTax Online, go to Federal > Deductions & Credits > Mortgage Interest and Refinancing (Form 1098).  You can add a 1098 here, and choose Change how I enter my form when you are asked to import, then Type it in myself. 

 

See more information, including all the conditions of deducting HELOC interest here: Can I deduct interest on a home equity loan or a HELOC?

Level 7
Mar 9, 2025 6:09:42 PM

In order to deduct the interest, the HELOC must be for the purpose of buying, building, or substantially improving the same qualified home that secures the HELOC. If, for example, you took out the HELOC against your main home and purchased a second home with it, the interest on that portion of the HELOC is not deductible.