I entered the information for a $1,000,000 mortgage incurred to buy a new home with a January 2022 origination date. TurboTax is carrying the entire Box 1 interest amount to Schedule A without applying the $750,000 limitation in calculating the interest deduction. I tried deleting the form and re-inputting the Form 1098 information but the same problem is occurring. As a temporary workaround I had to calculate the correct deduction offline, enter it instead of the amount reported in Box 1 of Form 1098, check the box below the entry indicating the amount is different, and then add an explanation when prompted in a later page. This doesn't seem like the correct fix.
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Did you verify this by reviewing schedule A or are you going by what is displayed on the deductions summary page? If you have verified the value on line 8a is not limited, you need to contact Turbo Tax support.
To verify if the program is working correctly, I plugged a $1M mortgage principal with $50K mortgage interest. The limitation was correctly applied by the following ratio;
($750K/$1M)($50K) =$37,500
Check Schedule A as Zomboo suggests. Also check your forms and look to see if the limitation was applied by looking at the Ded Home Mortgage Worksheet.
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