How do i deduct mortgage interest if the outstanding principal is above 750,000 and the mortgage originated in 2020?

Forum|Forum|4 years ago
January 25, 2022
1 reply
12 views

Should i enter the whole interest paid amount in the box 1 in turbo tax, even if the outstanding principal is above 750,000? So far it seems like turbo tax is using the whole amount as deduction, which is not correct.

TurboTax Premier Online

Mike9241

Level 15

i think there is a bug in Turbotax. I'm using the desktop version. it asks for box 2 from the 1098 but this is the beginning of the year balance. nowhere did it ask for the end of the year balance. my understanding is that the mortgage interest deduction should be based on the average mortgage balance for the year. it never takes me to the home mortgage interest limitation smart worksheet

the deductible interest I think should be mortgage interest times 750K/ average balance for the year

and the omission of the ending balance was not pointed out in the review process. wonder how many filed already with an incorrect mortgage interest deduction

Mike9241