Home mortgage interest deduction

[MerlinTobyPhoenix]

I have a standard 15-year mortgage secured by my primary home. I took out the mortgage to do repairs on my summer home, which was in too rough shape to qualify for a mortgage. Last year Turbo Tax asked me, as part of the Home Mortgage worksheet, how much of the loan was used for repairs/upgrades to my main home. I said none, so I didn’t qualify for the deduction. This year it didn’t ask the question, and automatically assumed that I qualified for the deduction. I found the relevant form, saw a box that should’ve been checked, checked it, then went back to Easy Step. It changed the amount of my refund, but there are still mistakes on the forms. It still shows a mortgage allowance on Schedule A, which I can only see by clicking on it directly. It didn’t print out when I asked to print everything. I think there must be a glitch somewhere and I would like to get it resolved before exiling. Turbo Tax ran an error check and thinks everything is fine, but it clearly isn’t. Any thoughts?

[AnnetteB6]

If the Schedule A did not print with your return automatically, then you probably are not using itemized deductions.  Check your Form 1040 line 12e to see which deduction is being used.  

If you find that the standard deduction is being used on your return, then you can go ahead and file without worry.  The Schedule A will not be transmitted as part of the return.

[MerlinTobyPhoenix]

The number is different from the standard deduction, but also different from the number on Schedule A. I don’t know where it’s coming up with the number I see on my 1040, which is why I posted.

[MindyB]

It sounds like you've encountered a situation where some information was carried from the previous year but not all the new 1098 interview questions appeared to verify eligibility for the current year. As you know, under IRS rules, for mortgage interest to be deductible, the loan must be "secured debt" used to buy, build, or substantially improve the home that secures the loan. Because your loan is secured by your primary home but was used to repair your summer home, the interest isn't deductible as home acquisition debt.

I recommend that you delete the Form 1098 and its associated worksheet entirely, then re-enter it from scratch. This "reset" forces the software to take you through the full interview again, where you can explicitly state that the funds were not used for your main home. 

You can also preview the 1040 and check Schedule A-  go to Tax Tools on the left of your screen, choose Tools, then View Tax Summary. On the left of the screen, select Preview my 1040.