Combined mortgage deduction lower than one of them.

Forum|Forum|11 months ago
April 13, 2025
1 reply
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I moved from old house to a new one in 2024 and I have mortgage interest on both. The old one with ~$100K principal initiated before 2017 and the new one with ~700K starting in 2022. TurboTax use the formula (interest1+interest2)*750K/(principal1+principal2) for the deductible interest and it is lower than interest 2. Is it correct? Can I somehow choose to just use interest 2?

PatriciaV

Employee

Yes, for most mortgage interest situations, TurboTax calculates the correct amount of deductible interest. If you have calculated a different amount using the instructions from IRS Pub 936 Part II, Limits on Home Mortgage Interest Deduction, you may enter this during the interview for Form 1098.

Click Done at the bottom of the 1098 Summary list and answer all questions until you come to the page "Your Mortgage Interest is limited." TurboTax provides a box on this page where can enter the deductible interest based on your calculations. No other overrides are necessary. Be sure to save your calculations with your other tax paperwork.

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