How Do I Calculate My Mortgage Interest Deduction?

How is mortgage interest deduction calculated?

Mortgage Interest Deduction Divide the maximum debt limit by your mortgage balance, then multiply the result by the interest paid to figure your deduction.

For example, say your mortgage is $1.25 million.

Since the limit is $750,000, divide $750,000 by $1.25 million to get 0.6..

Can mortgage interest be deducted in 2019?

Today, the limit is $750,000. That means this tax year, single filers and married couples filing jointly can deduct the interest on up to $750,000 for a mortgage, while married taxpayers filing separately can deduct up to $375,000 each. … All of the interest you paid is fully deductible.

How much mortgage interest can you deduct on taxes?

Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible.

Is the mortgage interest 100% tax deductible?

This is known as our adjusted gross, or taxable, income. … This deduction provides that up to 100 percent of the interest you pay on your mortgage is deductible from your gross income, along with the other deductions for which you are eligible, before your tax liability is calculated.

Is mortgage interest no longer deductible?

But for 2018-2025, the TCJA seriously curtailed deductions for home mortgage interest and property taxes. … For 2018-2025, you can only deduct interest on home equity debt that is used to acquire or improve your residence, subject to the overall $750,000/$375,000 limit.