Limit Int/points on 1098 should not be greater than -1270.00, the total interest and points reported on Form 1098. ( i coown loan, not my ssn &did not buy points )

The error condition stating that “limit int/points should not be greater than –XXXX” is being generated for the case where the taxpayer has mortgage interest reported on Form 1098 from their lender as well as a Mortgage Credit Certificate (MCC), but both forms were not entered into the tax return (or another specialized situation discussed at the end).

In order to be able to claim the MCC, the mortgage interest information from your lender must also be entered even though you are not claiming itemized deductions.

To correct the error, be sure that both the form 1098 information (and all the follow-up questions) and the MCC information has been entered into your tax return.  Also, do not enter any values or answers on the screen where you see the error.

To go directly to the section of your return to enter the 1098 information, you can use the following steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “1098” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to 1098” or just click the button to Go to 1098

 

After your 1098 information has been entered and the follow-up questions answered, the error condition should be cleared. 

(There was one additional case where the error could be generated even though both documents were entered.  If the box is checked that your name is not shown on the 1098 from your lender, then the error could be generated.  As long as your name is on the loan documents, you are liable to pay the mortgage, and you did pay the mortgage interest reported on the 1098, then you can uncheck that box to clear the error condition.)

Will it be a problem if I don’t report the name? because I need to enter who the form is under like how it ask for other persons name that the form 1098 ssn is under

Will it be a problem if I don’t report the name? because I need to enter who the form is under like how it ask for other persons name that the form 1098 ssn is under

No.  As long as you are also listed on the mortgage and liable to pay it there should not be a problem not entering the other person's name.

Mortgage interest info was already there and I reinputted the same info.  It keeps showing up as an error on for Schedule A, line 8a, perhaps because I am not itemizing but still want to take MCC interest credit.

Do I just ignore the correction, if inputted information is correct?

 

First of all, did you follow these precise instructions:

1. Select the “Federal ” tab
2. Select the “Deductions & Credits” tab, then select “all deductions”
3. Scroll down to the “Your Home” section, then select Start or Update - Mortgage Interest Credit Certificate
4. Answer “Yes” to “Do You Have a Mortgage Credit Certificate” and select “Continue”
5. Continue adding the information requested on the following screens from the certificate(s) you have and select Continue when finished with each. For the mortgage interest field, only enter mortgage interest that was for the loan covered by your certificate (do not use interest from other loans).
6. If you have more than one certificate, select “Done” when you have finished entering all of them, then press Continue.
7. On the “Qualified Main Home Address, enter the address of the home that you received the Mortgage Credit Certificate for, and select Continue. 
8. If you enter this correctly, you should have a form 8396 generated in your return and you will see this as a non-refundable tax credit on Schedule 3 of your return. 

If, you entered this in as a mortgage interest deduction, you will need to go into your return and remove that information so that the Schedule A can be removed from your return.