Finance Maxxing
Deductions & Credits
Mortgage Interest Deduction
Deduction for interest on up to $750K of mortgage debt.
Homeowners who itemize can deduct interest on up to $750,000 of qualified mortgage debt ($375,000 if MFS).
What Qualifies
| Loan Type | Deductible? | Condition |
|---|---|---|
| Primary mortgage | Yes | Up to $750K total debt |
| Second home mortgage | Yes | Combined with primary ≤ $750K |
| HELOC for home improvement | Yes | Funds used to buy/build/improve |
| HELOC for personal use | No | Not deductible after TCJA |
| Cash-out refinance | Partial | Only the portion used for home improvement |
Key Considerations
- This is an itemized deduction — it only helps if total itemized deductions exceed the standard deduction
- Mortgages taken before Dec 15, 2017 have a grandfathered $1,000,000 limit
- Interest on rental properties is deducted on Schedule E, not Schedule A (no cap)
Sources
More in Deductions & Credits
Standard Deduction
Fixed deduction amount based on filing status.
Itemized Deductions
Schedule A deductions that replace the standard deduction.
Above-the-Line Deductions
Deductions taken before AGI, regardless of itemizing.
SALT Deduction
State and local tax deduction, capped at $40,000 for 2025.
Charitable Contributions
Tax deduction for donations to qualifying organizations.
Student Loan Interest Deduction
Up to $2,500 above-the-line deduction.
Medical Expense Deduction
Deductible medical costs exceeding 7.5% of AGI.