Deductible Home Mortgage Interest Worksheet

[52leelee52]

Thank you!  This works!

[DS-CA]

@zg2   @JohnB5677 @KrisD15 

First, this thread is a disaster.  There are so many different issues going on its hard to keep it straight.  And even the experts seem to forget there are legitimate reasons for Federal deductible interest to be limited that has nothing to do with $1M or $750K limits but everything to do with the fact that cash out wasn't used for your home but for other things like paying bills or college. 

Second, there is definitely something wrong with the CA Deductible Home Mortgage Interest Worksheet (a TT SW defect IMHO) and the biggest issue is that you can't edit it!  Where are the circles with the "+" that allow one to override the entry?  Next, as many have mentioned it adds the multiple 1098 loan balances together instead of calculating the average.  Simply stated an average = sum of all monthly balances/12.  

When I do this manually because the worksheet doesn't allow me to edit it, I complete Part 2 and 3 using correct numbers that I have to manually generate I get "1.22" in line 11.  ERROR #3 if I'm counting correctly - that field should be limited to a number 1 or less than 1 (you never get to take more deduction than you paid).  Doesn't say that anywhere on the form.  Achieving at least  "1" means I get to deduct all of my CA mortgage interest even though Federal didn't allow it.    So, I manually add the difference to Schedule CA, line 8a, column C.    Reading the CA 540 instructions several limitations placed on deductions for federal do not apply for CA.   Go here to find the form you want and it will be emailed to you (mine came in a few minutes) https://www.ftb.ca.gov/forms/Search/Home

If I hadn't noticed TT error on the worksheet it would have cost me $$$$ in deductions.  

One final thought and I hope I am finally ready to file.  If you haven't checked your 2018 TT results you may want to do that.  I ran 2018 before I start 2019 and found TT had corrected an error that increased my refund by almost $600 and it was related to CA mortgage interest not having been carried onto a form properly last March when I filed.  Never thought to rerun last years' SW.    

[zg2]

@DS-CA 

Did you file CA return by yourself, or through TT? Looks like you got the form from https://www.ftb.ca.gov/forms/Search/Home and then filed separately? 

[Badar14]

I think I made mistake to spent money on turbo tax, Im having same issue redo my taxes and my due amount keep going up. 

[lgm1986]

Extremely helpful jmcglass.  Turbotax needs to fix this.  It automatically said the mortgage exceeded the limit.  It did not.

[DS-CA]

@zg2 

Sorry for late reply. I didn't notice a notification about your question. I filed federal with TT online (refund deposit in about 15 days!). I also used the forms that were generated with TT for CA state filling  (while I couldn't edit the worksheet I could edit the Schedule) but after so much time working through so many issues I wasn't about to give TT another dime so I printed and mailed them instead of paying to efile. Still waiting for CA deposit.  

[Tom1313]

Had the same problem!!! TT was counting the two mortgages together (even though I entered that the loan had been sold).

VERY annoyed.

Why hasn't this been fixed TT?

Thank you for advising where to go to fix it manually!!!

[zg2]

This issue was marked as Solved. How can we re-open the issue and have TT fix it? 

[Pyrarraz]

Although many of us have found work-arounds, and TT considers it solved, it clearly is not solved. Therefore, we must continue to work around the bug until the brainiacs at Intuit decide to pay attention!

[zg2]

To confirm, the workaround is to print the CA tax return, take out the Deductible Home Mortgage Interest Worksheet, and file through mails, right? I didn't figure out other workaround with online filing... 

[DS-CA]

@zg2 Please see the post I made March 29. That’s what I did. Not sure it worked because CA now one month with no response to my filing.  But it was my best attempt to work around TT defects.

CA FTB can take 3 months to respond to mailed filing. 😒

[Artem]

the workaround is to replace negative number you got on California  Home Mortgage deduction page with 0. it would adjust your deduction and give you correct amount. you can still file using turbotax online. 

[kathli]

Looks like the issue hasn't been resolved. Does anyone has update from TT about the timeline to fix the glitch?  I use desktop and I may have to overwrite average balance of all mortgages base on # of month outstanding, not sure if system allow me to efile?  Hope TT could fix it ASAP. 

In addition, there has another issue on CA Ded Home Mort Interest Worksheet that it automatically include $100K home equity amount to calculate qualified amount even though I don't have HELOC.  

[debkrech2010]

I tried to follow the advice of the 'experts' on the multiple 1098 scenarios and submitted my taxes... it has been over 2 months now waiting for my return with the message of 'still processing'.  Obviously the expert fixes are not liked by the IRS... Getting pretty upset with the IRS not liking their advice,

[squirrels17]

I'm in the same situation @debkrech2010 - still waiting 2 months after e-filing for direct deposit. I'm not pleased with TurboTax's lack of customer support regarding this rather common situation. And while I know the numbers submitted were ultimately correct (working around TurboTax's failings), I can't help but think that they may have been improperly presented (missing some other form or worksheet, perhaps?), triggering this extensive review for which I have received no official IRS correspondence.

This has all been a learning experience for me - one that leads me to seriously consider hiring a personal tax preparer next year to save myself the headache.