How to Fix Home Mortgage Interest Limitation

[dbrink51]

How do you change the Form 1040 for your Home mortgage interest limitation? Others have had this problem, but no solution has been found, other than supposedly downloading the desktop version. Some glitch happened to the program between when I entered the mortgage interest last week and today, when I finished entering the rest of my tax return. Now, it won't let me change anything and still does not give me my full refund. Please actually be of some help and fix this.

[DMarkM1]

Yes, there is an entry somewhere that is triggering a limitation and it is usually related to entering multiple forms 1098.  For the best results you'll need to delete all the 1098 entries and start fresh. 

Follow these steps.

Be advised the mortgage worksheets are not part of the forms that are filed with the IRS.   Follow these steps to correct/eliminate the limitation on your mortgage interest deduction:

1. Deductions and Credits
2. Update Mortgage Interest topic
3. Delete all 1098s
4. Done
5. Update the Mortgage interest topic
6. Yes
7. Put in oldest loan first
8. Primary or Secondary Home as needed
9. None of the above
10. Enter form information from old loan
11. Continue
12. No points to deduct
13. Yes Most Recent if this is the only loan on this home; No if you have another 1098 for a loan on the same home
14. Answer the Refi questions as needed
15. Continue
16. Add a lender
17. Same steps as above for the new loan
18. Continue
19. Done
20. If there is a limitation introduced you'll be asked to review the entries to enter any payoff information
21. Now you should see the page explaining the limitation
22. You can click the help me with this link and see that if you take your loan balance at the beginning of the year box 2 old loan and add it to the balance of new loan at end of year (loan amount 1 Jan 2023) and then divide by 2.  If the average is below 750,000 that means all of your interest is deductible. 
23. In the "Your Adjustments" box enter the total interest paid for 2022 from box 1 of your 1098s
24. Continue

If you need you can re-post with specific loan (1098) information to get specific instructions for your situation.

[dbrink51]

Hi,

Thanks for the response, but I have tried that multiple times, but nothing has changed. I bought the house in June and have only paid ~$5500 in interest, so not even close to the maximum limit, so it should all be deductible. No form pops up afterwards asking about it, and the deductions never mention my mortgage interest.

[PatriciaV]

This experience has been reported and is still under investigation. You may sign up for updates here: 

Why isn't my mortgage interest flowing into my Schedule A? Even if this doesn't seem to apply to your situation, the form & calculations will be updated in TurboTax when the investigation is complete.