If you are using TurboTax CD/Download version you must right click on the filed then select 'Override' to change the amount. More information is provided due to the cash out of the HELOC.
The state of your HELOC funds is important to calculate the appropriate amount of mortgage interest deduction that is allowed. In other words since some of the money was used for something other than to buy, build or improve your home you need to figure out the allowable deductible interest? Only loan proceeds that are used directly on your home for capital improvements can be used to calculate your mortgage interest deduction.
Any additional debt not used to buy, build, or substantially improve a qualified home isn't home acquisition debt. TurboTax will calculate the amount of allowed mortgage interest deduction based on your entry or you can choose to make the entries yourself.
- To review the information and worksheets you can use this link: IRS Publication 936, page 12 (you can make the appropriate entries by selecting 'I'll enter it myself')
The worksheet you are referring to can be edited by using the right click, then selecting 'Override'. Returns that contain overrides cannot be e-filed and may not be covered under our 100% Accurate Calculation Guarantee.
Please update here if you need further assistance and one of our tax experts will help you.
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