The system isn't properly calculating my itemized deductions. It is leaving out the mortgage interest deduction and as a result, is telling me not to itemize.

Review your responses to the mortgage questions. You may have inadvertently responded such that it made your mortgage ineligible for the deduction.

The IRS lets you deduct your mortgage interest, but only if you itemize deductions. You can't deduct the principal (the borrowed money you're paying back).

In addition to itemizing, these conditions must be met for mortgage interest to be deductible:

• The loan is secured, which means the lender has some kind of guarantee of payment, usually in the form of property. If a borrower defaults on payments, the lender can seize the property that’s securing the loan. If you’re buying or refinancing a home, especially if it’s your first home, the loan is usually secured by the home you’re buying or refinancing
• The home with the secured loan must have sleeping, cooking, and toilet facilities
• The debt can’t exceed $750,000 (or $1,000,000 if the loan was taken before December 16, 2017) to get the full deduction
• You or someone on your tax return must have signed or co-signed the loan
• If you rented out the home, you must have used the home more than 14 days during the tax year or 10% of the number of days you rented it out, whichever is greater

For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it’s secured by.

If you’ve ever used part of this loan to pay for things other than this home, you cannot deduct the interest from that amount of the loan, even if the transaction didn’t take place this year.

Examples of common ways you might have used this money not on your home include:

• Making a down payment on a different home
• Funding improvements on a different home
• Making a payment on a different loan or debt
• Having miscellaneous large purchases

Example: Jo took out a home equity line of credit on their home on Tuberose Street for $40,000. They used $25,000 to remodel their kitchen and bathrooms in their Tuberose Street home, and $15,000 as a down payment on a second house on Snowdrop Lane. Jo can only deduct the interest they paid on $25,000 they used to improve their Tuberose Street home.