Why am I getting less mortgage interest credit than I have reported mortgage interest?

Forum|Forum|7 years ago
June 1, 2019
3 replies
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I have reported mortgage interest of $14,390.37 however, I am only getting an intemized deduction credit of $4,257.00. Why is this?

TurboTax Premier Windows

ljb13Author

Level 2

yes - i consolated a first and home equity on two different houses and took out some cash to pay off my credit cards

Vanessa11_2

Level 13

Was any of your mortgage a cash out refinance? or home equity loan?

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Vanessa11_2

Level 13

Mortgage interest is only deductible on the part of the mortgage that was used to buy, build or substantially improve your home, so when you finished answering the questions in TurboTax and entered the amount that was used to buy, build or substantially improve your home, it was likely about 30% of your total balance.

"No matter when the indebtedness was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the loan proceeds weren't used to buy, build, or substantially improve your home."https://www.irs.gov/publications/p936

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