TurboTax is not accounting for the mortgage interest deduction limit for balances over $750k. I see no way to correct this on my own. Can someone help? Thanks.

Forum|Forum|4 months ago
January 19, 2026
2 replies
15 views

I entered my 1098 details and TurboTax summed up all my interest owed and counted that towards my deduction. I got a notice from the IRS that I only claim an interest deduction for a mortgage amount up to $750k. I see no way to correct this on my amendment. This should be easy to fix, but I see no way to do it through your platform without changing the numbers entered for my 1098s.

TurboTax Online

ThomasM125

Level 15

It is possible that you can deduct mortgage interest up to $1,000,000. If you took out the mortgage before October 13, 1987 or between October 13, 1987 and December 16, 2017 and the balance is not more than $1,000,000 in 2025 you may qualify. That may be why TurboTax is allowing a greater deduction. You can read more about it in IRS Publication 936. If you qualify, you can explain that to the IRS and they should allow your deduction.

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amanda-m-jacksonAuthor

Level 2

No the mortgage was taken out in 2019.

RogerD1

Level 6

I tested the mortgage calculation in TurboTax on a large loan amount of $1,000,000, and the itemized deductions would change based on whether I entered a date before 12/16/2017 or a date after that. If you have TurboTax desktop, you may want to open it up and go into Forms mode by clicking on Forms or the right in the blue banner near the top. Look for the form in the left side menu called Ded Home Mort and in part 2 it will show an amount on line 2 if the mortgage was acquired on 12/16/2017 or before - if there is a value on line 2, then an mortgage origination date of 12/16/2017 or earlier was entered on the screen for the 1098 in TurboTax. If so, switching the date to the date in 2019 will reduce the mortgage deduction to where it should be. If the amount of the total refund/balance due switches to what the IRS states, you can just agree to their letter and pay the bill they sent you. If it doesn't agree, you can amend the return and file it with the correct balance due.

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bc209

Level 2

I see the same issue, it is defiantly turbotax bug. I think I found the issue with turbotax. This is happening for property that are purchased between October 13, 1987 and December 16, 2017. Normally, the software should have populated "Deductible Home Mortgage Interest Worksheet" (Ded Home Mort) Part 2 line 2 with the calculation from page 1, currently it does not populate that field. So that part of the mortgage was ignored in the calculation and therefore not counting toward the limit.

Turbo tax claim themselves to be the leader of the industry and yet they still have so much bugs in their software in the middle of the tax season. This is the second bug I encountered. They should at least check their software against last year product to avoid these kind of silly mistake. I am very disappointed.

user17723875573

Level 2

Yes, this is definitely a bug.

TurboTax is not picking up beginning and ending values of the mortgages. This information should transfer from last year's return, but it doesn't! (Note that this info is not supplied on 1098 forms...you must get the information yourself from your mortgage company. Box 2 of the 1098 is BEGINNING OF YEAR balance.)

I have two mortgages so this matters...one is post-10/13/1987 but pre-12/5/2017 and the other is post 12/15/2017. (No grandfathered pre-10/13/1987)

You need to override the Deductible Home Mortgage Interest Worksheet in TurboTax. Zoom to this worksheet and then edit the numbers by EDIT - Override. (Or Ctrl-D). Once you have the average balances correct, the program will figure out the limitation percentage. (And then you can watch your refund decrease.)

KC8888

Level 2

Thank you Dave and others for workaround suggestion. Last time I tried to override manually it would not allow me to, i'll have to try again with latest patch. Not sure if I like the workaround of putting original origination date, while it maybe legal I prefer not to mismatch the 1099 and get IRS flags.

I would think Turbotax needs to fix this bug. It was a silent bug that I only caught by my comparing to my last years return. I can imagine many customers not noticing and filing returns with incorrect large deductions.

thanks