I had most of my taxes filled out but was waiting on Mortgage 1098. TT was showing an $800 refund until I entered my mortgage interest and tax information, specifically the Outstanding Mortgage Principal. As soon as I enter this number, my $800 refund gets wiped out and shows me owing $70 instead.
I'm married filing separately and the principal balance on the house is 267K so that's far below the 1 million dollar value I have read about where interest may no longer be deductible. I've looked all over the internet about why this may have happened or rules or laws about this and the only thing I can find is that you can't deduct mortgage interest if the value of your house is too high, but that's not the case here.
Anyone have any ideas why this may have happened?
