Question

Mortgage Interest Deduction

Forum|Forum|5 years ago
February 17, 2021
1 reply
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Can someone explain why my mortgage interest deduction is about 13,000 less this year from last year? The interest I paid is about the same but the deduction is way different.

J

JotikaT2

As this is a public forum, we cannot see your income tax return so we cannot address exactly why your deduction is lower this year.

As long as your principal balance is below the limits and your loan is secured by your residence, you should be able to deduct the entire amount of your mortgage interest expense.

This would be an issue if your loan balance exceeds $750,000.  If it exceeds this balance, your deduction will be reduced.

If you refinanced, please see the link below to assist you in entering your 1098 information to ensure the deduction is not limited.

Multiple 1098 forms

Deductible expenses on refinance

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