Thanks NC! I finally figured it out. In TT, it asks if Box 7 of the 1098 is "checked" but it doesn't say anything about Box 8. While Box 7 isn't "checked" per se, and I originally clicked "No"I had another look at the 1098 and it DOES state that the loan is secured with the address in Box 8. I went back and corrected Box 7 to a "Yes". Just an interpretation issue. While the standard deduction in my case is higher than the deductions for the 1040, the latter are still allowed on my State Tax Return, thus reducing State tax obligations. Yea!
