How can I add a mortgage interest deduction through TurboTax on a personal home loan?

[HugosWorld]

How can I add a mortgage interest deduction through TurboTax on a personal home loan?

Key details: It's a home loan, NOT through a bank so no 1098, and I paid interest.

[KrisD15]

The note would need to list a lien on the property. If the loan is personal, it cannot be used for the Home Mortgage Interest Deduction. 

According to the IRS:

"You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that:

Makes your ownership in a qualified home security for payment of the debt;

Provides, in case of default, that your home could satisfy the debt; and

Is recorded or is otherwise perfected under any state or local law that applies.

In other words, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. If you can't pay the debt, your home can then serve as payment to the lender to satisfy (pay) the debt. In this publication, mortgage will refer to secured debt."

Pub 936

[HugosWorld]

@KrisD15 Thanks for this! We do indeed have a deed of trust.

Wondering how I put upload that document and where I can do that while I file via TurboTax, not seeing any option for it…

I believe I'm looking for how to input line 11 of schedule A. Per this link @https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-to-enter-mortgage-interest-received-from-personal-loan-should-i-send-borrower-form-1098/00/35205#M1721

[rjs]

@HugosWorld 

Is the loan from the person that you bought the home from (a seller-financed loan)? If so, enter it in the regular mortgage interest section. When you get to the screen that says "Do any of these situations apply?" select "This is a seller-financed loan."

That old post that you referenced from several years ago is wrong. Line 11 of Schedule A is for contributions to charity. Mortgage interest that was not reported on Form 1098 has to be entered on line 8b of Schedule A. If it's not a seller-financed mortgage, there is no way to make the entry in TurboTax Online. The entry can only be made in forms mode. Forms mode is only available in the CD/Download TurboTax software, not in TurboTax Online.

In forms mode, enter the interest directly on Schedule A line 8b. Do not use the Home Mortgage Interest Worksheet. If you enter it this way, TurboTax will not calculate any limits that might apply to the deduction. See "Part II. Limits on Home Mortgage Interest Deduction" beginning on page 9 of IRS Publication 936 to see if any limits apply to your deduction.

Note that mortgage interest is an itemized deduction. It will not make any difference in your tax or your refund unless your total itemized deductions are more than your standard deduction.