I purchased a home in 2018 with a mortgage that exceeds $750k. For my Federal return, I'm aware that I can only deduct interest I paid up to the $750k principal limit, and Turbo Tax indicates that I will need to manually calculate this amount and enter the lower amount into Turbo Tax (for example, my 1098 says I paid $26,000 in interest, but I calculated that only $23,000 is allowed to be deducted).
For New York State, their tax laws indicate that even though for Federal purposes mortgage interest is limited, these tax law changes do not apply to New York State. The problem I'm having is that I reduced the amount of interest when I itemized my Federal taxes in Turbo Tax, but there doesn't seem to be an option in Turbo Tax to correct the deduction on my New York State tax return to be the actual amount of mortgage interest I paid.
Has anyone experience this and can explain to me how to increase the mortgage interest deduction on my state and local taxes within Turbo Tax? Thanks!
