Form 1098(mortgage interest). I am married & filing separately.What is my California Additional Mortgage Interest Adjustment value? Do I need to divide my Form 1098?

[Andrew-L]

My wife & I are married but filing separately. In 2018 we purchased a house/mortgage of $800k. For my California Mortgage Interest Adjustment, What is the amount I should be entering here? do I enter the amount divided by 2 and we each claim 50% of it? 

Example:

Mortgage amount = $800k

Mortgage Interest paid in 2018 = $10k

Year End principle balance= $788k

What is my "Additional California Mortgage Interest and Home Equity Interest Adjustment"?

California does not conform to the new federal law that limits taxpayers to the interest on $750k ($375k for married filing separate) of home mortgage acquisition debt. California allows taxpayers to deduct interest on loans up to $1M ($500k for married filing separate). Additionally, federal law also limited the deduction on up to $100k for interest on home equity indebtedness, unless the loan was used to buy, build, or substantially improve your home that secures the loan. Important Note: This impacts loans originated on or after December 15th 2017. Loans originated prior to this date are grandfathered. In this situation, no adjustment would be necessary. Enter the amounts you did not deduct on the federal return that were limited. This would be on the amount of the loan over $750k (but not over $1M) plus any amount of home equity loan interest you paid. 

[KrisD]

Enter any amount that you were not allowed on your return. 

If you are claiming 10,000, but were only allowed 9,000, enter 1,000.

If you are claiming 5,000 but were only allowed 4,500, enter 500.

[jlorance]

How do you find the amount you were not allowed on your return?

[KrisD15]

With the Desktop programs, you can switch to forms mode and look at the 1098 Worksheet.

For Online, you can't see the worksheets until after purchase. You could pay, print the worksheet and adjust the California return.