mortgage interest

Forum|Forum|7 years ago
February 17, 2019
1 reply
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After entering the interest on my mortgage and heloc loan I noticed no change in my refund. Isn't mortgage and heloc interest deductible ?

IsabellaG

Employee

Yes, mortgage interest is still deductible if you took out a mortgage to purchase your home (home acquisition debt). Your HELOC interest may be deductible to the extent that you used the funds to make improvements to your property. If you used the funds for any other purpose, the interest is not deductible.

However, your mortgage interest deduction can be limited. Beginning in 2018, taxpayers may only deduct interest on $750,000 of qualified residence loans. That includes both your regular mortgage and your HELOC.

You might not be seeing an increase in your refund because the Standard Deduction has been increased this year ($24,000 for Joint returns, $12,000 for Single, and $18,000 for Head of Household) which means that many taxpayers will no longer be able to itemize deductions, and will take the Standard Deduction instead.

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