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January 31, 2022
Question

Mortgage Interest Not Included in Itemized Deduction

  • January 31, 2022
  • 1 reply
  • 0 views

Hello, I'm filing 2021 Tax. I have a max state/local tax deduction of $10,000. In addition, the total mortgage interest is $18,424 and our original loan is less than $750K (refinanced in 2021). So I thought we can go with an itemized deduction of $28,424 but Turbo Tax insists, if itemized, the deduction is only $10,000 for the state/local tax. I'm not sure what I am doing wrong? 

    1 reply

    rjs
    Employee
    January 31, 2022

    There are lots of things you could have done wrong. One common error is to not correctly answer the question about whether the loan is secured by a property of yours. If the loan is not secured by a property that you own, the interest is not deductible. Most mortgage loans are secured by the property that the mortgage is for.