To switch to itemized deductions, you do have to select Wrap up tax breaks. You can always go back in later if you need to make changes. Once you hit that button, TurboTax confirms some information then shows you the Based on what you just told us, itemizing or standardizing your deductions is best for you and gives you the totals. If you want to switch, there's a Change my deduction button.
There is no way to see the home mortgage interest worksheet prior to paying for TurboTax Online. If something does not seem to be calculating correctly, and you refinanced this year, please follow these instructions:
- In the Federal > Deductions & Credits section of your return, scroll down to Your Home and click Revisit/Start next to Mortgage Interest and Refinancing (Form 1098)
- Add another 1098 or edit an existing one.
- Answer the questions and enter or verify the information as it appears on your 1098. Make sure you have both the box 1 amount and the property taxes if they are reported on the form.
- Answer What kind of property is this loan secured by?
- Answer We didn't pay any points .
- Answer No for the loan you refinanced out of to Let's see if this is the most recent form for this loan.
- Answer Yes to Is this the original loan used to buy your property? for the original loan
For the second 1098, you would do the same except answer Yes in step 6. For Step 7, you would say No to Is this the original loan then Yes to Is this loan a HELOC or a refinance? and answer to Did you take cash out?
Note that if you took cash out and did not use it to improve the home, that portion of mortgage interest is not deductible.
After you enter both mortgages, both should be flagged with Needs review. For the old mortgage, you want to enter the date you refinanced and the amount you owed on the loan when you refinanced. When it asks Do either of these apply to this loan? Answer Yes if you originally purchased the home prior to December 15, 2017, or the second situation applies.
For the new mortgage, you can leave the date of payoff blank and enter the balance as of January 1, 2022, which you should be able to get from your mortgage statements. Again, answer Do either of these apply to the loan?
At that point, TurboTax should correctly calculate your loan limit and deductible mortgage interest correctly. If something still does not seem right, then we can look into it further.
@wavemoon
@srsjis
