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anon1231
New Member

TurboTax calculating mortgage interest & real estate tax deductions incorrectly for my home, because of rooms I rent out (Schedule E)

I own my home and live here, and rent out about 35% of the square footage to housemates.

Problem is, when I try to put this into TurboTax, it double-credits me for my mortgage interest and real estate tax.

Here's what I did:
- In the Wages & Income tab, I followed TurboTax prompts to input income and expenses (including mortgage interest and real estate taxes) for the rooms I rent out, and it calculated the Schedule E deductions correctly. In this section, I also checked the box that says that I'm renting out rooms in my own residence.
- Then I moved on to the Deductions tab. There, I followed TurboTax prompts to input my 1098, which shows the total mortgage interest and real estate tax for my entire property, including the rooms I rent out.
- Now TurboTax is calculating my deduction as the personal portion of my Schedule E PLUS the entirety of my 1098. This means it's calculating my mortgage interest and real estate tax deductions as 65% higher than they should be.

I have tried just leaving out the 1098 and that fixes the numbers, but TurboTax forces me to enter the 1098 when I get to the "review" stage, which then creates the error again.

How am I supposed to make sure that the Schedule E deduction and the personal deduction add up to the total shown on my 1098?
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1 Reply
RickA
New Member

TurboTax calculating mortgage interest & real estate tax deductions incorrectly for my home, because of rooms I rent out (Schedule E)

when you review do not enter the 1098 again ,  you know that you entered it already in another screen  so it is just making sure you did not forget to enter the 1098

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