Mortgage Interest Deduction and Prop Tax not working. Forces Standard Deduction even though credits are way over $25k.

[dasmodul]

I swear there was some major debacle with a mortgage interest bug last year too!

I'm sitting here looking at at least $29k-33k in itemized deductions and my federal owed won't move at all because it's using the standard deduction (supposedly).

This is even accounting for the $10k SALT limit on property taxes. Otherwise my deductions would be in the $40k range.

Is this a bug you're working on? I've done my taxes for 17 years and this is now the second year in a row i have issues with Turbo Tax Home & Business not being able to correctly calculate mortgage interest (2x).

[KrisD15]

The "rules" regarding Mortgage Interest being deductible changed several years ago and information needed to calculate the proper credit is not listed on the 1098, which makes the interview lengthy and confusing. 

Since you are using TurboTax Desktop, you might want to sign-up for an email update regarding this worksheet. 

It should be resolved by the end of this month. 

Link for sign-up

[dasmodul]

Okay. I'll keep an eye out later in the month and just did the sign up.

[dasmodul]

Any update on this folks? It's March 11 now and lot of us need to file but can't because we literally can't complete the biggest deduction that affects how much we have to pay? Is there a backup plan on instructions to somehow do the worksheet manually if you can't figure out the fix? Thanks

[MarilynG1]

Yes, you are able to make entries directly on the Mortgage Interest Worksheet in FORMS mode (and on Schedule A). 

Click this link for instructions on completing the worksheet from the IRS  (see page 12).

Can you manually switch from Standard to Itemized Deductions? 

[dasmodul]

Running into this same EXACT issue with 2022 return. It's forcing standard deduction instead of itemized even though my deductions are way over $25k limit. I forced Itemized mode as you suggested last year and this time it's not working. In fact, during its summary comparison vs 2021, it's spewing out errors and listing all the amounts as $0 (even though they are not). Not sure what to do.

[AbrahamT]

I hoipe your'e not taking into account Misc itemized expenses that are subject to the 2% rule ( excess of 2% of the amount of AGI like union dues, job search expenses, uniforms and job supplies that are no longer deductible under the Job Care Act since 2018. Also, medical deductions are subject to excess of 7.5%, over AGI, insurance premiums in excess of 10% of AGI.

See HERE for the details https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/tax-deduction-wisdom-should-you-item.... In addition, there are limitations on charitable contributions as follows Annual income deductions for charitable contributions, are 30% of adjusted gross income (AGI) for contributions of non-cash assets, if held more than one year, and 60% of AGI for contributions of cash. 

As far as I am concerned, the higher itemized deduction amount worked for me. See here

 

[dasmodul]

No that wasn't it. It seems to be working now. I had to delete all my mortgage interest and deductions and re-enter them, then do the same forced-itemization procedure and now it's working. Lot of hoops to jump through with itemization the past 3 years with this SW. 

[SummerSunshine2026]

YES!  Same issue!!! They need to fix this ASAP!

[SummerSunshine2026]

Same issue!

[jennss]

Having same issue with 2022 desktop version of Turbotax. Mortgage Interest is not pulling into Schedule A. 

defaulting to standard deduction but with the mortgage interest and property tax - itemized is better than standard deduction. Am unable to override on the form directly and efile the return. 

[MichaelG81]

This is a confirmed issue that is actively being resolved, Thank you for your patience. Please click here to sign up for updates when resolved.

@jennss 

@dasmodul 

[MStau]

I am using the Premier 2023 desktop product for my 2023 Fed and CA income taxes and it is forcing me to take the standard deduction instead of itemized deduction.  This is even after consideration of the SALT $10k limit - my mortgage interest and charitable donations put me way over.  Very disappointed that this remains an issue.  This has to be fixed in order for me to file my taxes on TurboTax otherwise I will use another product and demand a refund.  

[zomboo]

Turbo Tax doesn't force the standard deduction. It selects it based on your allowed deductions. There is an option to select itemized deductions even though Turbo Tax thinks you are better off with the standard deduction. More information is needed to figure out why the software is not giving you the deductions you believe it should.

[MStau]

What additional info do you need?  I am MFJ and have similar income and expense (nature and amounts) as last year when I filed with Turbotax without this problem.  When I force TT to itmize, my Federal tax liability increases so the program must be ignoring some of my itemized expense entries?