My wife and I are filing Married-Filing-Separately (assume that this is our best option). Our mortgage balance is 700K, well under 750K. Home was purchased in 2018 after the 750K principal limit took effect. Our mortgage interest paid for 2021 was 20K.
Now, Turbo Tax Desktop calculates our mortgage interest deduction as $10,714 each because it doesn't know how to specify the correct numbers in each document.
However, the above is not correct because we would end up deducting more than what was the mortgage interest for the year.
In reality, one of us can take $10,714. And the other can take the rest $9,286. Total $20K.
How can I specify how much to deduct for myself and how much to deduct for my wife, while married filing separately?
