Deductions & credits
You should go back and make sure your Form 1098 entries are correct and make sure you answered the follow-up questions accurately.
To get back to your Form 1098 screens, you can do the following:
- Click on the search icon at the top right of your TurboTax screen
- Type "1098" in the search bar
- Click on the link "Jump to 1098"
- Review your 1098 entries to make sure all numbers are correct and that you answered the follow-up questions accurately.
There is a cap on how much of your mortgage interest can be deducted. The limit is the mortgage interest paid on the first $750,000 of indebtedness for a single individual or married couple filing jointly, or $375,000 if you're Married Filing Separately.
You are both entitled to claim mortgage interest if the house is in both names. Do you share the interest deduction?
Also, did you answer the question "Have you used the money from this loan exclusively on this home?" as no? If you did, you will be limited in your mortgage interest deduction.
You have to answer "Yes' to "Is this loan secured by a property of yours"
If your second home is rented out for part of the year, you have to use it for more than 14 days or more than 10 percent of the number of days you rented it out at fair market value (whichever number of days is larger) for the home to be considered a second home for tax purposes. If you use the home you rent out for fewer than the required number of days, your home is considered a rental property, not a second home and the interest will not be deductible.
Your TurboTax screen should look something like this:
If you answered that you did not use all of the money from your mortgage loan exclusively for your this home, this will reduce your deduction.
You must have answered yes to "Is this loan secured by a property of yours?" for your mortgage interest to be deductible.
Click here for "Deducting Mortgage Interest FAQs"
