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

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

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?

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.

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?

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?

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-file/00/25740

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-the-turbotax-software/00/26129

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

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 

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?

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. 

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?

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 

> 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?

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.

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.

This does successfully move the amount to 8b on Schedule A.

But Turbotax Smart Check seems to not letting me leave the Lender's name blank on the Home Int Wkst....what should I do?

Hi @MonikaK1 When I follow @PatriciaV 's advice, I get the following message during the review stage of my return in TurboTax

"Check This Entry: Home Mortgage Interest Worksheet : Recipient's SSN -OR- Recipient's EIN must be entered."

I am guessing TurboTax Smart Check is freaking out but I can file with the error? Since the "error" is intentional and the error is only for the worksheet which is for my record and not filed with the return?

Try this: 

State the lender's name in the Home Mortgage Interview section. 

If your Home Interest Worksheet has box 2a checked "no" (because you didn't receive a 1098) and box 12 checked either "yes" (for seller-financed loan) or "no" (since you didn't purchase the property from the recipient of the interest payments), there should be no error in the Review that would prevent you from e-filing. I just tested this in TurboTax Home and Business.

Hi thanks @MonikaK1 

If I have 2a checked no and box12 checked "no" (since I didn't purchase the property from the recipient of the interest payments), I see a change on my Schedule A, where previously 8b is populated (which is what I want) but now 8a is populated instead.

Is there a way to have 8b populated and not get errors when trying to file?

or should I directly edit Schedule A to populate 8b removing 8a?

while still keeping the box 2a checked "no" and box 12 checked "no" on my Worksheet?

oh interesting, I just noticed when I select box 12 on the Home Int Wkst to "no" the box 2a would automatically change to "Yes", vise versa, if I checked "yes" on box 12" then 2a is automatically switch to "no"

@MonikaK1 how did you keep both boxes 12 and 2a to be "no" ?

I meant that I tested in Forms mode with 2a as "no", and once with 12a as "Yes" and again with 12a as "no" and didn't get an error in Review either way.

interesting, I am in form mode as well but cannot get both boxes to be checked "no", if 12a is checked "yes" I get an error during Review :( 

If you can check 12a "no", and don't get an error, I suggest following that route. With 12a checked "yes", you are saying that the seller financed the loan.