Interest Deductions

Forum|Forum|6 years ago
March 8, 2020
11 replies
31 views

Hello. Completed my taxes for 2019 and entered my mortgage interest as instructed. At the end when the software did it's review and compared my deductible total to 2018 I did not see the mortgage interest that I entered previously why? Deduction was only for $4,500 on a $111K loan. It deducted last year. Did the tax law change? I could not find any. Thank you. Chase

Best answer by AnnetteB6

Yes thank you but none of what you noted applies. It's almost seems like a software issue. I've done the taxes on Windows 7 and also on a Windows 10 computer and it come out the same.

It is a small thing to check, but be sure that when you entered your mortgage interest that you indicated that it was secured by your home. If for some reason that entry was missed or incorrect, then the mortgage interest is not deducted.

@ChaseT

GiseleD

Level 14

It sounds like you took the standard deduction in 2018. If this was the case, then you did not deduct the mortgage interest (even if you entered it). The Tax Cuts and Jobs Act nearly doubled the standard deduction for most filers, thus many are no longer able to itemize.

Regarding the $4500, even if the loan was for $111k, you can only deduct the interest and mortgage insurance (if applicable) portion of the loan. The mortgage interest is in box 1 of your 1098, and the mortgage insurance (if applicable) is in box 5.

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ChaseTAuthor

Level 2

Thank you Gisele. Not sure why that would make a difference. In reviewing my tax return from Turbotax for 2018 I did itemize for 2018 (Schedule A was ~$19.2K). For this year same. Turbotax has recommended Federal Itemize Deductions since it's greater than the $12.2K but in the previous screen ((2019 Deductions & Credits) the mortgage interest of $4,400 that I entered is now $0. Doesn't make sense if Turbotax is recommending itemizing.

DMarkM1

Level 15

I suggest you delete and re-enter the form 1098 information. Once complete and you click "done" and "wrap up tax breaks" at the bottom of the follow on pages, you will come to the standard vs itemized comparison page again. Below that graph is a hyperlink to show the itemized deduction breakdown. Verify what amount is showing there for interest deductions.

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