HELOC Interest Deduction

Forum|Forum|6 years ago
February 8, 2020
1 reply
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I am a California resident, and my HELOC originated in 2015 (prior to the tax changes that occurred during 2017),

I incurred interest during 2019 in the amount of $270.22 on the HELOC. I did NOT receive my 1098 Form from the lender because the amount was under $600, and in order to get a 1098 Form from the lender, you need to incur more than $600.

However, my understanding is that regardless of whether you receive a 1098 Form, the interest incurred is still tax deductible, correct?

Where do I itemize this deduction in TurboTax? Should it be itemized under the Federal Section, as an addition to the mortgage interest or under the State Section under the California Mortgage and Home Equity Interest?

I am not sure of the proper placement for this item. Please advise. Thank you!

NCPERSON1

you are correct; it is still deductible, as long as the money from that HELOC was used used to buy, build, or substantially improve your home (if you used the money for vacations, cars or what have you, it's not deductible)

you can just create a 'dummy' 1098 form in TT (federal section). Just make believe you received the form from the mortgage servicer.