Alabama State Mortgage Interest

Forum|Forum|6 years ago
February 13, 2020
2 replies
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Why is my State return showing 0 in the mortgage interest box. It will not let me edit the information. I entered it on the federal but it did not qualify on the federal in. Am I not allow to enter for deduction and credit for state? This is the only thing keeping me from finishing my tax return.

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DavidS127

Level 13

The Alabama tax return uses the information entered during the Federal interview. So, even if you didn't itemize for Federal purposes, you need to enter the mortgage interest in the Federal section for it to be "picked up" on the Alabama tax return.

Alabama permits the higher of your itemized deductions or the Alabama standard deduction (maximum of $4,000 for married filing jointly). So, if you've already entered the mortgage interest in the Federal section, check your answers in the first part of the Alabama return.

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Kandles1214

Level 2

I have entered the mortgage interest from the 1098 on the federal return. When you start on the Alabama State Return, it will not allow you to put anything in the box for mortgage interest. It has a zero there.

Will it hurt to apply it in the box below that states "Mortgage interest not reported on the 1098"

Once I processed the return on thru, on the itemized deductions section for Mortgage Interest it shows $0.

AmyC

Level 15

My AL return is showing the mortgage interest that I entered in the federal section. Are you sure you answered all the federal questions about the mortgage interest to show you qualify? It sounds like the program is saying you did not qualify to claim the mortgage interest.

I suggest you return to the federal section and review the mortgage interest entries.

You may want to contact a specialist that can work through that section of the return with you.

@Kandles1214

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Stupidasur3

Level 4

I am having a similar problem. It happens when it takes you to the screen that asks if this was the original loan you took out to purchase this property. Whereas, before selecting that this is a refinance, it WAS passing the interest onto my Alabama State return, once I selected this to be a refi it completely Zeroed out the Mortgage Interest on Schedule A of my Alabama Return. This is BIG, as that's alot of money. When will Intuit fix this?