Mortgage Interest Deduction Limits

Forum|Forum|6 years ago
February 13, 2020
2 replies
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During Federal Review, I'm being flagged for Limits on my Mortgage Interest Deduction. If have three mortgage loan deductions. The third loan was a complete refinance of the second loan. In the Deduction and Credits section, I answered NO to the limitations question on whether my loans exceeded either the $1M pre-2017 and $750K post 2017 thresh holds. When I went back to the Deductions and Credits section, the program had changed my answer to yes. I answered NO again, but the same thing happed. Is this a flaw in the program? How do I deal with it?

JohnW152

Level 15

There are no known issues with the Mortgage Interest Deduction. Your best bet is to delete the Mortgage Interest data and re-input it.

In TurboTax Online:

Click the Federal tab on the left, then

Click Deductions & Credits, then

Click Your Home, and finally,

Mortgage Interest and Refinancing (Form 1098) Revisit.

rlm3Author

Level 2

I beg to differ with your answer. After posting my question, I discovered several others that point to my exact issue; including one that points to this issue going back as far as FY18. Care to explain that?

VictoriaD75

Level 12

There is a workaround for this.

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:

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.

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Flysouth

Level 2

I have the same exact issue (4 1098s for the same mortgage for 2019) and TurboTax has calculated 3 different refund amounts when I used the workarounds here. I'm VERY concerned that TurboTax is not calculating things correctly.

How is it possible that SAME input results in three DIFFERENT results?

TurboTax - time to actually provide a meaningful response to this.

NCperson

Level 15

do you have 4 1098's because the mortgage was sold multiple times. In other words, you have the same mortgage on January 1 as you did on Dec 31 with no refinances. If so, I'd just make believe it's one 1098 and input the data as such.

what TT is testing for is whether you mortgage exceeds $750,00 and whether all the debt is considered 'acquisition' debt. None of that matters if the reason for the multiple 1098's is that the servicing was sold over and over again.