Mortgage Interest Deduction

Forum|Forum|6 years ago
May 1, 2020
2 replies
27 views

I am being forced to use the stand deduction even though my itemized deductions are higher. I believe it it because we had total mortgage balances greater than 1 million, but it was for two different properties since there was an overlap due our buying a home prior to the house we sold closing so we had two mortgages for part of 2019. Is not recognizing the interest correct in this situation?

Best answer by VictoriaD75

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.

If you qualify, you may indicate as such in the software.

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.

VictoriaD75Answer

Level 12

If you qualify, you may indicate as such in the software.

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.

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