• Mortgage interest deduction helps homeowners reduce the amount of taxes they owe.

  • These deductions are reported on Form 1098 and Schedule A or Schedule E, depending on the type of deduction.
  • The Tax Cuts and Jobs Act (TCJA) of 2017 reduced the maximum mortgage principal amount eligible for an interest deduction to $750,000 (from $1 million).
  • Some homeowners are exempt from the new restrictions under heritage regulations.
  • Many taxpayers are waiving the mortgage interest deduction in favor of a larger standard deduction.