Received notice that TurboTax miscalculated my mortgage deduction in 2020. Followed instructions to amend return, but TurboTax making same mistake. How do I fix this?

Anonymous · ‎September 3, 2022

It seems that TurboTax hasn't complete fixed the issue with miscalculated mortgage interest. I know it should be capped at $750,000 worth of indebtedness ($1,000,000 for mortgage debt before 12/31/2017). I had over $1,000,000 in mortgage debt between my primary residence and my former residence (I bought my present residence before I sold in the former one in mid-2020). I reported around $25K in mortgage interest, and to amend the return, I went and checked the mortgage interest and got a message that my deduction would be $18K, which makes sense, but when I look at Schedule A it still shows $25k. Wondering if it is possible, advisable to somehow manually edit Schedule A and resubmit?

Critter-3 · ‎September 3, 2022

The notice you recieved should have given you a phone number to call for assistance with this issue.

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fanfare · ‎September 3, 2022

Make up a 1098 with a small outstanding balance but interest of 18K.

Schedule A and your itemized deduction amount should then be correct.

@Anonymous

Anonymous · ‎September 12, 2022

I called the helpline, and they helped me with the fix. Go to forms and open Tax & Int Wks. Scroll down to Mortgage Interest Limited Smart Worksheet. On the line "Does your mortgage interest need to be limited" use override to change the answer from No to Yes. Only do this if you are positive that your average mortgage balance if over the limit.

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Received notice that TurboTax miscalculated my mortgage deduction in 2020. Followed instructions to amend return, but TurboTax making same mistake. How do I fix this?

After you file

After you file

After you file