1098 mortgage

[jjzonka]

Hello, 

I generally always take the standard deduction and planned on doing the same this year. I don’t save receipts because I don’t qualify to itemize for at least the past four years but may have been able to with this years interest but my total is not much more then the married filed jointly standard deduction. Can I just continue to take the standard deduction this year and not worry about this or itemize using the 1098 for simplicity? I have a lot of things going on now in my life and are trying to do my return as simple but correctly as possible. Will there be any red flags with the IRS if I choose not to itemize and use my 1098 cause I know they receive this form also? Thanks for your expertise!

[AnnetteB6]

Yes, you can choose to use the standard deduction instead of itemizing.  You are not required to itemize deductions.

For simplicity, just do not enter the information from your Form 1098 for your mortgage interest since you do not intend to use it as part of your return.  There will be no red flags from the IRS for not reporting a possible itemized deduction.  

[jjzonka]

Thank you SO much! I have so much stress and illness in my life right now, so simplicity is the best for me. This filing is even late for me then usual but I know I have some time left. 

For clarification, So in my turbo tax deduction section, I can just leave the 1098 and property tax section blank under deductions? And I won’t get my return rejected or red flagged by the irs for not including this since they receive a copy?

If all else fails I can always ask for your expert to complete for me as well correct and just pay the difference as I believe I saw this is a new feature this year?

[AnnetteB6]

Yes, just leave the mortgage interest and property tax sections blank if you definitely do not want to use itemized deductions.

You may be referring to TurboTax Live Full Service.  Take a look at the article below to learn more:

What is TurboTax Live Full Service?

@jjzonka

[jjzonka]

Thanks for simplicity I am just doing the standard deduction this year as I saved no receipts due to just qualifying for

this the past few years. This year my mortgage interest was higher due to me paying my late mortgages but I have no other receipts and time to do this. I will leave my deductions blank for mortgage and property tax related to this? Now it’s still ok to put my child credit under credit section and add my property tax information to my state only? 

also since the irs gets my 1098 when they receive my tax return with nothing reported it will not be compared to this, red flagged, or my refund put on hold for not claiming this right?

[JulieS]

No, the IRS does match 1098-INT to taxpayer's returns, but you only get flagged if you claimed more than what is on your 1098. You are free to claim less or $0. 

[jjzonka]

I can still put my property taxes on my state return correct?

[DawnC]

You may be able to tax a deduction on your state return.   The only place to enter the 1098 is in the federal section.   If you enter in the federal section and you take the standard deduction, TurboTax won't use the 1098 when preparing your federal tax return (Form 1040).    Some states make you use the same deduction as you used on your federal return but some state let you itemize on your state return even if you took the standard deduction on your federal return.   If your state allows you to itemize (or if they have some kind of separate homestead credit), TurboTax will use the information from your federal return, including the 1098 you entered.   

So, yes, if you can use it on your state return, enter it on the federal and TurboTax will include it when you do the state tax form preparation.  It is not going to hurt anything to enter the 1098, and if you do, it will be available for use on your state return and won't require any additional data entry.    Where do I enter my 1098 mortgage interest statement?