Cannot adjust mortgage interest as secondary owner in TT desktop

[mliiiii95]

Hi,

I am trying to claim mortgage interest deduction for my portion of interest payment, but TT desktop premier does not allow me to adjust the interest payment. (The mortgage balance is 1.2M exceeding 750k so I am trying to claim only half of it around 600K)  I am a co-owner of a mortgage and underlying house. My SSN is not on 1098 (my name is the second one on 1098). After entering the primary name on 1098 and entered principle amount, TT filled interest deduction using 750K balance. I only want to use the interest deduction less than what TT filled but I am not able to adjust the interest. What should I do? (I tried to override in form but TT won't allow me to file electronically if I override) 

[MonikaK1]

Revisit the mortgage interest interview. When you get to the screen that asks, 

Do any of these uncommon situations apply to your loan? Select the first option Someone who isn't my spouse co-owns this loan. Then select whether or not your social security number appears on Form 1098. If your name isn't on the 1098 but you're liable for the loan, you can deduct the portion of the interest you paid.
 

As indicated by TurboTax, only enter the amounts that you are liable for. If everything is split evenly, only report half the mortgage interest, outstanding mortgage principal, mortgage insurance premiums, and property taxes.

If you are filing as single and own a home with someone else as joint tenants, then you should check the box indicating that your amount is different from what is on the 1098 and also revise the amount in Box 1 to accurately reflect your part of the interest.

For example, if your 1098 reported interest of $6,000 and you are splitting the interest evenly with the other joint tenant, you'd enter $3,000.

Lastly, on the next screen, briefly explain why the amount is different (you'd enter something like "filing single and own my home as a joint tenant").
 

If you are responsible for more than $750,000 of the outstanding mortgage principal, then your deduction will be reduced. If you are not, then you will get an itemized deduction for the full amount of mortgage interest paid if this is your only mortgage, assuming this is a first or second home for both you and the other party and that it is not used as a rental property. 

See also this IRS FAQ page and this TurboTax tips article for more information.

[mliiiii95]

Hi, thanks for replying. I am using TT desktop premier and I don't see the question "Do any of these uncommon situations apply to your loan?"  during my mortgage interest interview. I only see "Do any of these situations apply" and I can select "My name is not on the 1098 or my name isn't the first one listed on the 1098"

I found this discussion Basically I should input half of the interest and princple in box 1 and 2. Is this correct?

[MonikaK1]

You should enter only the amounts that you are responsible for; if that is half of the principal and half of the associated interest, then that is what you should enter.