How to edit Schedule A (form 1040) on turbo tax for 2023 tax return?

[Curious_panda1]

I like to get deduction for mortgage interest paid but not reported on form 1098. line 8b on Schedule A. "Home mortgage interest not reported to you on Form 1098. See instructions if limited.If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address".

I don't have a form 1098 because its a peer to peer loan. I did my due-diligence. The loan is secured (collateralized by the home, lien provided).  

How can I access Schedule A on Turbo Tax? I already selected itemize deduction. When I ask Intuit Assistant bot, a link is given to me to Add/Edit Schedule A. When click on the link I see "Did you spend more than $39,685 on medical expenses in 2023?" which I did not, when I answer "No" the window closes and I am brought back to the main page for "Deduction and Credits"

[VolvoGirl]

Enter Mortgage Interest  under
Federal Taxes (Personal Home & Business version)
Deductions and Credits
Your Home
Mortgage Interest - Click the Start or Update Button

[Curious_panda1]

This would result the mortgage interest shows up on line item 8a "Home mortgage interest and points reported to you on Form 1098. See instructions if limited"

Since I don't have a Form 1098 I need to report it to line item 8b on Schedule A, do you know how to do that on TurboTax?

[VolvoGirl]

Ok in my Desktop program when I add a lender one of the screens says Do any  of these situations apply?  Pick the second one This is a seller-financed loan and I did not receive a 1098.

[Curious_panda1]

Thanks, I just explored this option.

But then I am required to input the seller's address, which doesn't make sense because the loan is not financed by seller.

The address is only needed if the loan is finance by the seller according to 8b.

"""

Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address

"""

Is there a way to record the mortgage interest on 8b without claiming the loan is originate from the seller?

[Curious_panda1]

VolvoGirl, I am debating if I should get the Desktop version.

In your Desktop version Form Mode, are you able to directly edit Schedule A?

[VolvoGirl]

Yes you can see and enter directly into the forms.  And other features.  If you want to switch you can download the .tax2023 file from online without paying for online and open it in the Desktop program to continue.  

First save your return as a tax data file from Online
https://ttlc.intuit.com/community/saving/help/how-do-i-save-my-turbotax-online-return-as-a-tax-data-...

See how to switch to the Desktop program,
https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-th...

After you get the program installed the first thing to do before you open your tax return is to update the program and install any state programs you had. Then open your file. So you first might need to start a fake return to be able to download the state program (go to FILE - NEW). Enter some basic information, then go to the state tab and download the state program. Then try to open your existing return, go to FILE - OPEN

[PatriciaV]

Yes, you can report the interest without entering the lender's information if using TurboTax for Desktop. You need the desktop version in order to edit forms.

1. Under Federal Taxes >> Deductions & Credits, enter the mortgage interest information as if you received a 1098. Leave the lender's name blank.
2. Go to Forms Mode (Forms icon in the TurboTax header).
3. Click on the Home Int Wks [Untitled] in the left column to open it in the big window.
4. Scroll down to Line 12 and check the Yes box but leave the lender info lines blank. (Note that this is a TurboTax form and is NOT included with your tax return.)
5. Now open Schedule A and confirm that the interest not from Form 1098 appears on Line 8b.
6. Click Step-by-Step in the header to return to the main screens.

@Curious_panda1 

[zomboo]

I am not a tax expert and I am sure I don't understand your situation completely but I don't know why you can't select the 'Financed by seller, Didn't received a 1098 form' option. Even though it is not a seller financed mortgage, you are paying interest on a loan that is used to either purchase or improve your primary home and the loan is secured by the home.

In order to claim the interest paid, the IRS needs to know who you paid it too. In your case, I assume it is the Peer-to-Peer managing company. When Turbo Tax asks for the seller's info, why not put in the P2P company's info? Is there a reason this can't be done because the P2P company is not technically the seller? Is there a tax expert out there willing to weigh in on this?

[JulieS]

No, it's not a good idea to report the P2P company as the seller. 

PatriciaV's solution will get the results you need without adding any false information to your return. 

[zomboo]

Okay. You are the experts but I would not feel comfortable doing this. How is it okay to claim a mortgage interest deduction and not identify the recipient of the interest paid? Wouldn't that make the IRS curious?

[DianeW777]

No. You have the documents to substantiate your mortgage interest and it's completely acceptable to create and file an accurate tax return.  Occasionally that requires action on your part.  The IRS has the documents and entering them into your tax return is a convenience and easier in most cases, but not required by the IRS.  Also, the IRS does not require this document to be mailed with the return even if you file by mail.

If you prefer, and using TurboTax Online you can choose to have your return prepared using TurboTax Live.

• How to get TurboTax Live (Online Only)

@zomboo 

[Curious_panda1]

> Scroll down to Line 12 and check the Yes box but leave the lender info lines blank. (Note that this is a TurboTax form and is NOT included with your tax return.)

but line 12 says "Did you buy your home from the recipient and did NOT receive a form 1098, enter the recipients identifying number and address"

I did not buy the home from the recipient. Should I select this option?

[MonikaK1]

You should not select this option unless you are going to report that your lender sold you the property.

As previously explained by @PatriciaV and other users in this discussion, you would need to switch to TurboTax Desktop and make edits in Forms mode in order to be able to report that you paid the interest to someone other than the seller when you didn't receive Form 1098. 

• Under Federal Taxes >> Deductions & Credits, enter the mortgage interest information as if you received a 1098. Leave the lender's name blank.
• Go to Forms Mode (Forms icon in the TurboTax header).
• Click on the Home Int Wks [Untitled] in the left column to open it in the big window.
• Scroll down to Line 12 and check the Yes box but leave the lender info lines blank. (Note that this is a TurboTax form and is NOT included with your tax return.)
• Now open Schedule A and confirm that the interest not from Form 1098 appears on Line 8b.
• Click Step-by-Step in the header to return to the main screens.

The option you are seeing says that you paid interest to the seller of the property, which you indicated is not the case, and asks you to provide their information. If you report that the lender sold you the property, they may receive an inquiry from the IRS or other tax authorities as to reporting profits from the sale as well as the interest income.

[zomboo]

If this is truly a P2P mortgage, you should have received a 1098. Have you checked with the P2P network company and asked them why you haven't received a 1098? Maybe it's a downloaded form only. Also a lien on your home may not qualify your loan as secured. I believe there needs to be a trust deed or similar document that allows the lender to foreclose on the property.

Again, I am not a tax expert. I am just bringing up things to consider.