In this tax worksheet, the taxpayer’s qualified mortgage loan limit and home mortgage interest deduction are calculated.
Your clients want to purchase a home with a $1,200,000 mortgage. They want to know how much of the interest paid is deductable for home mortgage interest as well as the qualified loan limit.
The qualified loan limit in this instance is $1,010,000, and $42,083 33 is deductible home mortgage interest.
View the Mortgage Loan – Deductible Interest flowchart by selecting the Tax Flowcharts item group button for more information on this subject.
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In this tax worksheet, the taxpayer’s qualified mortgage loan limit and home mortgage interest deduction are calculated.
Your clients want to purchase a home with a $1,200,000 mortgage. They want to know how much of the interest paid is deductable for home mortgage interest as well as the qualified loan limit.
| Field | Input |
|---|---|
| Average balance of all home acquisition debt | $1,200,000 |
| Acquisition debt limit (enter $1,000,000 or $500,000 MFS) | $1,000,000 |
| Fair market value minus acquisition and grandfathered debt | $10,000 |
| Total interest paid | $50,000 |
The qualified loan limit in this instance is $1,010,000, and $42,083 33 is deductible home mortgage interest.
Notes
For further assistance on this topic, click the Tax Flowcharts item group 
button to view the Mortgage Loan – Deductible Interest flowchart.
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FAQ
What is mortgage interest deduction worksheet?
If your debt is subject to restrictions, the Deductible Home Mortgage Interest Worksheet can assist you in calculating your deductible home mortgage interest.
How do I calculate deductible mortgage interest?
You can calculate your mortgage interest deduction on your own. To calculate your deduction, divide your remaining mortgage balance by your maximum debt limit, then multiply the result by the interest paid.
What mortgage interest is deductible in 2022?
Limit on the amount that can be deducted for mortgage interest before the Tax Cuts and Jobs Act was $1 million. However, the cap was reduced to $750,000 in 2022, so this tax year married couples filing jointly and single filers can both deduct interest up to $750,000.
Can I deduct PMI on my taxes 2022?
The deduction for private mortgage insurance (PMI) won’t be carried over to the tax year 2022, so I can’t claim it on my 2022 return.