My combined mortgages exceed $750,000 but Turbotax is deducting all of my mortgage interest. This must be a bug...

[jasonthomasy]

I paid $35,882.79 in mortgage interest across two mortgages this year.

• Mortgage A: $19,066.08 mortgage interest on $673,438.69 starting balance
• Mortgage B: $16,816.71 mortgage interest on $750,000.00 starting balance

I know that TT is allowing me to deduct the full $35,882.79 because of the attached screenshot. Did I do something wrong? I entered in the starting balances of the two mortgages, so Turbotax definitely knows that my combined mortgages exceed $750k. What am I missing here?

[jtax]

Is any of this debt pre 2018? (the old $1M limit applies to such grandfathered debt). That wouldn't explain why it is allowing > $1M)

Are you sure you correctly answered the TT questions about when the loans were initiated/refinanced?

I'd suggest you look at the Home Interest Worksheet for each loan and the overall Deductible Home Mortgage Worksheet. The former will let you verify your data entry and the latter will show you the limitation calculation so you can figure out where it went wrong. Usually it is a data entry issue.

Super easy to find in the Desktop TT version but for the online version like you are using I think you basically need to print a PDF with the right options. See this 2019 answer. Not sure if it still applies. 

https://ttlc.intuit.com/community/after-you-file/discussion/where-are-the-worksheets-in-my-tax-retur...

[jasonthomasy]

No none of it is pre-2018. So I have to pay first to figure this out? Those documents aren't available right now because I haven't paid. 

[jtax]

I don't know if that's the only  way to figure it out. That's just where I would start. This is a volunteer forum. You could try customer support if no one else has any ideas.  I think the problem is with how TT asked you its questions and/or how you answered those questions. TT did not get the right meaning from them.

Or it could be a bug. But it looks like it does the right thing to me on the non-cloud version.

[adkmkmbaker]

I have had the same problem and customer support had no clue.  I have tried different programs and get anywhere from the full amount of 35k down to 12k.  I worked through it using the IRS worksheet and got 25k.  So confused.  Isn't this why I pay them?

[jtax]

The best way to track this down may be to look carefully at the PDF forms preview after answering the questions. Use the IRS publication/worksheets as well. This is involved but is how those of us volunteers track down these detailed problems. As you go through it you can usually figure out why isn't working out as you expected. Sometimes you can also figure there is a bug and what it is. It usually isn't a bug, but sometimes it is. It's no fun, but it does let you see a lot of what is going on behind the scenes.