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Level 1
posted Jan 31, 2021 2:29:05 PM

How do I deduct qualified mortgage interest if my loan exceeds the IRS limit of $750,000?

I've followed the instructions in IRS Publication 936 (https://www.irs.gov/pub/irs-pdf/p936.pdf) and calculated the reduced amount of interest that should be deductible.

For the purposes of this example, let's say this value is $27,000.

 

However, when I enter this value in TurboTax in the mortgage deductions, it doesn't match what is visible in my Form 1040 Schedule A, 8a. (visible in preview before filing). The amount that shows up in the 1040 Schedule A is much less than the amount I calculated and entered in the deduction section. For this example, let's say the value is $15,000.

 

So, how do I correctly get the deduction applied?

0 1 318
1 Replies
Level 8
Feb 2, 2021 7:10:29 PM

Why is my Home Mortgage Interest being limited?

 

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the the Home Mortgage Interest to be incorrectly limited.

 

If you're experiencing  the issue above,  please go here to receive email notifications when any updates related to this issue become available.

 

Please note that the IRS is not beginning to accept and process returns until February 12th.