How do I get TurboTax to apply the 750,000 debt li...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
malcdi2
New Member

How do I get TurboTax to apply the 750,000 debt limit for deductible mortgage interest? It is currently considering *all* my interest deductible, which is incorrect.

I  bought and sold a home in 2019. The sale took longer than expected, and I owned both for a few months. Accordingly, my total debt for 2019 exceeds the 750,000 limit. However, when I enter both 1098's, TurboTax considers *all* my mortgage interest paid in 2019 qualified for deduction, instead of just the interest up to the 750,000 limit. I don't know how to get it to apply the correct multiplier to my mortgage interest paid. I have tried entering and re-entering the 1098's several times.
2 Replies
VictoriaD75
Expert Alumni

How do I get TurboTax to apply the 750,000 debt limit for deductible mortgage interest? It is currently considering *all* my interest deductible, which is incorrect.

For desktop versions:

  • In Forms view, locate and click on Tax & Int Wks on the left from the forms list
  • On the form, scroll to Mortgage Interest Limited Smart Worksheet
  • Click on YES to the right of the question, Does your mortgage interest need to be limited

For online versions, after entering the 1098 interest information, continue through the screens and TurboTax will ask you if the interest needs to be limited.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
malcdi2
New Member

How do I get TurboTax to apply the 750,000 debt limit for deductible mortgage interest? It is currently considering *all* my interest deductible, which is incorrect.

Thanks! I am using the Premier online version, and do not get asked this question at any point between starting and filing. It just includes all of the interest in the deduction, which is over-claiming.

v
Privacy Settings