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March 13, 2021
Question

Where do I input a home equity loan that is different from home mortgage?

  • March 13, 2021
  • 1 reply
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Home equity loan

    1 reply

    March 17, 2021

    A home equity loan is also a home mortgage loan. You can deduct mortgage interest paid on a home equity loan but only to the extent the proceeds were used to buy, build, or substantially improve your home (see below).

     

    See Can I deduct my mortgage? for a discussion of the mortgage interest deduction.

     

    Here's how to enter your mortgage interest statement in TurboTax:

    1. With your return open, search for 1098 and select the Jump to link in the search results.
    2. Follow the instructions to enter your 1098 information

    From Publication 936 (2020), Home Mortgage Interest Deduction:

     

    Home equity loan interest. No matter when the indebtedness was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the loan proceeds weren't used to buy, build, or substantially improve your home.

     

    Home mortgage interest. You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017.