home interest deduction

[akatman1]

When I put my home mortgage interest (form 1098) amount into turbotax deluxe, it did not change what I owed to the Feds in the least.  All I got was a message that the standard deduction is my best option.

I've used turbotax deluxe many years before and my home mortgage interest deduction was always a big deduction off my Federal taxes.  What's up with 2022??

[xmasbaby0]

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[akatman1]

Bla Bla Bla...this does not solve the issue.  In the past, even when I took the standard deduction route, when I entered the amount of my home mortgage interest deduction, I would see, IMMEDIAgTELY, the lowering of my Federal tax due in the upper left hand corner of the turbotax deluxe program.

Why is this not happening NOW ???

I also called in to turbotax help and the person who logged into my computer could barely speak english.  He didn't help me at all and after a half hour of "hold on.  I'm talking to my support team," I gave up and asked for someone else to better communicate with.  After another 10 minutes of waiting, he said he would connect me, and guess what... he connect me to a "you have reached a disconnected number..." message.

The worst experience I have ever had with an Intuit rep.  I will never purchase this product again (I have been a turbotax user for the past 20 years too).

[xmasbaby0]

Are you asking about getting the refund monitor to show up on your screen?

Click < or > to get the refund monitor to appear.  You might also have to toggle off that “race mode” or click Review.

[Mike9241]

at that time had you entered all your itemized deductions? 

here are the standard deduction amounts for 2022. 

Married filing joint or qualifying surviving spouse $25,900

Single $12,950

Head of Household $19,400

Married filing separately $12,950

Additional age 65 or older or blind for each (not dependents) - double if both conditions are true (MFJ, QSS, MFS) $1,400

Additional age 65 or older or blind (not dependents) - double if both are true (Single, HOH)  $1,750 

**

for itemized deduction medical expenses are reduced by 7.5% of adjusted gross income and the deduction for taxes is limited to $10,000.  as you pay down your mortgage the interest component decrease so at some point it isn't enough when added to other itemized deductions for the total to exceed your standard deduction