The Deductible Home Mortgage Interest Worksheet is designed to help you calculate your deductible home mortgage interest if that debt is subject to certain limitations.
Do you need to file the Deductible Home Mortgage Interest Worksheet?
Generally, home interest is deductible on a Form 1040 Schedule A attachment if it's interest paid on debt secured by your main or second home.
Refer to the IRS's Deductible Home Mortgage Worksheet Pub 936, Part 1. Home Mortgage Interest to see if you need to file this worksheet.
How do I go to the Deductible Home Mortgage Interest Worksheet in ProSeries?
To access the Deductible Home Mortgage Interest Worksheet in ProSeries:
- Open your client's Form 1040 return.
- Tap the F6 key to go to the Open Forms window.
- In the Find: field, enter "D," "H," and "M" to find Ded Home Mort in the form menu.
- Double-click Ded Home Mort or select OK. The program will take you to the Deductible Home Mortgage Interest Wks, Part 1 - Home Mortgage Loan Information.
The ProSeries Deductible Home Mortgage Interest Worksheet isn't available for tax years before 2012.
Completing the Deductible Home Mortgage Interest Worksheet
To complete the worksheet, you need to fill out the following sections:
Part 1 - Home Mortgage Loan Information
| Interest paid in 2023 | Enter the interest paid on up to five qualified home loans. |
| Points paid in 2023 on 1098 | Enter the fully deductible points paid on up to five qualified home loans. Don't enter amortizable points here. |
| Months loan outstanding | Enter the total number of months the loan was outstanding for up to five qualified home loans. |
| Principal paid on loan in 2023 | Enter the total principal on each loan. The program assumes the payments were made evenly over the period the loan was outstanding. The principal is applied to the loan balances in the following order if the loan consists of more than one type of debt: 1. Home equity debt, 2. Grandfathered debt, 3. Home acquisition debt |
Home Debt Originating after December 15, 2017
Enter the beginning of year balance on up to five qualified loans and any additional amounts borrowed during the current tax year.
The program will determine the average home acquisition loan balance and interest allocated to that loan based upon your entries.
Home Debt Originating after October 13, 1987 or before December 15, 2017
Home equity debt is debt that's taken out after October 13, 1987 other than to buy, build or substantially improve a main or second home that secures that debt.
Home acquisition debt that exceeds the $1 million ($500,000 for Married Filing Separately) limit can qualify as home equity debt, but should still be entered as home acquisition debt on this worksheet.
Enter the beginning of year balance on up to five qualified loans and any additional amounts borrowed during the current tax year.
The program will determine the average home equity loan balance and interest allocated to that loan based upon your entries.
Home Debt Originating before October 14, 1987 (Grandfathered Debt)
Grandfathered debt is debt that's taken out before October 14, 1987 and isn't limited.
However, it reduces the $1 million ($500,000 for Married Filing Separately) limit for home acquisition debt and the limit based on a home's fair market value for home equity debt.
Enter the beginning of year balance on up to five qualified loans and any additional amounts borrowed during the current tax year.
The program will determine the average grandfathered loan balance and interest allocated to that loan based upon your entries.
What the program does with its calculation
Line 12 of the worksheet, plus any points entered multiplied by the ratio on line 11, will transfer to the Schedule A, line 10 "amount to deduct on Line 10 if different" field.
Additional information
Home equity debt is limited to the smaller of $100,000 ($50,000 for Married Filing Separately) or the total of each home's fair market value reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt.
Determine the fair market value (FMV) and debt on each home on the date that the last debt was secured by the home.
Home acquisition debt greater than the $1 million limit ($500,000 for Married Filing Separately) may qualify as home equity debt.
