Question

Mortgage interest deduction

Forum|Forum|1 year ago
February 21, 2025
1 reply
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Hi,

my loan exceeds 750k; i have nearly 45k in interest. Last year, I claimed 45k on my taxes with an agent, but TurboTax is telling me to adjust it to 40k instead of 45k. Should i select 45k again?

thanks!

TurboTax Premier Online

KrisD15

No,

if your loan balance was over 750,000 in 2024, and the loan was obtained after year 2017, the interest you can claim as a deduction will be reduced.

If the loan was taken out or refinanced in 2023, you might have been able to adjust the amount of interest based on the "average" loan balance (if the loan balance was less during part of the year) but that would not be the case for 2024 if the balance was over the 750,000 limit the entire year.

If your loan balance was over 750,000 for all of 2024, the reduced amount TurboTax is suggesting should not be changed to the full amount of interest.

IRS Pub 936 explains further

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