KrisD15
Employee Tax Expert

State tax filing

If the interest was limited on the Federal return because your acquisition debt was over the 750,000 Federal limit, you would add to the California state the amount of interest that was disallowed up to a 1,000,000 debt limit. 

California also allows for up to 100,000 equity debt, so if the federal interest was limited because you took cash out, that interest can also be added back (up to 100,000 cash out) 

You should have gotten to a screen that asked “Do any of these situations apply to you?” . That screen would have the total available. 

Subtract what was allowed (on your schedule A) from the total available. Also add back in any disallowed because of cash-out loans. 

 

You may also add up the interest you reported from your 1098(s) and subtract what was allowed on your federal Schedule A. The difference is what you can add to your CA return as long as your home mortgage debt is not over 1,000,000 and any equity loans are not over 100,000.

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