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posted Mar 17, 2020 5:26:45 PM

Interest deduction: schedule A's interest number is 0 even though I have two 1098 forms added.

Hi,

 

I filled in everything and it says it will return a few hundreds to me. I started filing, and it asked me to input a thing in checking stage, I wasn't sure, and input 0, then instead of returning a few hundreds, I need to pay a few hundreds.

 

Not sure what field I changed. But it changed from itemized deduction to standard deduction. I can force it to use itemized deduction but I need to pay a few thousands now. I figured out the issue is that now in itemized deduction, my schedule A's mortgage interest number is 0 even though I have two 1098 added, with total interest paid in 2019 like ~19000. I'm sure this is the diff, but how can I fix it now? I can't change scheduel A's 0 number, I also don't know how to revert my change to that field I don't understand.

 

Thanks!

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1 Replies
Expert Alumni
Mar 18, 2020 5:47:54 PM

The limit on the amount of interest has changed under the Tax Cuts & Jobs Act. The interest deduction pre-TCJA has been available to qualified mortgage debt up to $1 million ($500,000 married filing separately).

 

Through 2025, the TCJA has lowered the amount of qualified mortgage debt to $750,000. For qualified mortgage debt incurred on or before December 15, 2017, the $1 million limit remains in place, thus "grandfathering" existing mortgage debt.

 

To allow your interest deduction, try this workaround:

 

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 NO 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. If you do not see these screens, the workaround below may help.

  • Under Deductions & Credits, expand the menu for Your Home
  • Click Start/Revisit next to Mortgage Interest and Refinancing (Form 1098)
  • Click through until you get to a screen that says Do any of these situations apply to you? Mark Yes.
  • On the next screen, take out the zero.
  • Click back and choose No.