CA State Tax, Mortgage Interest Adjustment

I'm filling out CA state tax.  The prompt is "Enter the amounts you did not deduct on the federal return that were limited. This would be on the amount of the loan over $750,000 (but not over $1,000,000) plus any amount of home equity loan interest you paid."  

 

I'm very confused about what I should be putting in here?

 

Option1) My loan amount was 909k, does that mean I enter 909-750=159k for the amount of the loan over 750k plus 1k for any amount of home equity loan interest you paid? (I got that 1k from a HELOC I had for a short while). So I would enter 160k?

Option2) For interest payments, I actually paid around 26k. I assume 10k was deductible for federal, so I'd assume I'd put down what was over the 10k limit, so would I enter 16k?

Option3) Another interesting case is that there seems to be some base 13.5k added to my mortgage interest deductions, bringing it up to 26+13.5k = 39.5k I don't know why, but TurboTax had me calculate my average loan amount ((909k+791k)/2)=850k and then use that as a part of a fraction for calculating what I could get for federal (750k/850k) = .88, so 39.5k*(.88) = 34.75k. So would I enter the leftover part (39.5-34.75k) = 4.75k?

Option4) I read some online TurboTax forums and one person suggested to enter the amount of mortgage interest above 750k. So for me that would be (909k-750k) = 159k and then 159k*(.04375, my interest rate) = 7k.


What do I enter for the California Mortgage Interest Adjustment? Is it 160k, 16k, 4.75k, or 7k?

State tax filing

Hi..did you figure out what to enter? I had a similar question!

sealtainn
Returning Member

State tax filing

I agree, TurboTax appears to have added confusion to complications added to our taxes in this area. If the software can't come to the correct conclusions then it has lost its usefulness as we can do better with paper forms like we used to.