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jd5504
Returning Member

Mortgage interest deduction issues

My home interest and charitable deductions do not lessen my federal tax amount

DaveF1006
Expert Alumni

Mortgage interest deduction issues

You may have enough deductions to be able to itemized thus receiving the standard deduction. The second possibility is that you may have reduced your taxable income to zero with all of your itemized deductions. To see if you are receiving the standard deduction or itemize deductions: 

  1. Log into Turbo Tax
  2. Go to federal>deductions and credits
  3. Scroll through the screens until you get to the screenshot shown below. If it says you are receiving the standard deduction, you did not have enough deductions to itemize. If it says you are receiving itemized deductions, then your itemized deductions exceeded your standard deduction.

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tzim6971
New Member

Mortgage interest deduction issues

I just realized that the mortgage interest wasn't calculated and I submitted my return.  Now what? wait until you fix the bug and then file an amendment?  Since I owed (without the mortgage interest) will the IRS now refund my payment? 

DaveF1006
Expert Alumni

Mortgage interest deduction issues

Yes, you can file your amendment now.I would suggest you contact a live support agent to assist you in entering the information in correctly. Please use this link to  Contact Us to contact live help.

 

Once your amendment is filed, you should see a refund on your amended return.

 

 

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sokwong
New Member

Mortgage interest deduction issues

I tried the method you mentioned below by "change my deduction" and TurboTax does not allow the mortgage interest deduction that was paid.  The house balance is below the threshold of $750,000.  It only picks up the state and local taxes (state income tax) that was paid but did not not allow the mortgage interest deduction or property tax paid.  The correct total itemized deduction should be $21,840.10 but TurboTax is only allowing $10,500.  Therefore, recommending the standard deduction of $18,650.

 

I paid for the TurboTax Deluxe software and did not expect this problem to persist.

pjg527883
New Member

Mortgage interest deduction issues

Not cool Turbo Tax.  Some of us are filing now and the mortgage interest glitch is not fixed.  I'll have to file an amendment - the program only would use half of my interest paid no matter what I tried.  The mortgage interest change happened last year - I bet my taxes for last year are wrong too.  AND you can only find it if you actually look at your 1040 and see how the calculation comes out.  Bad form.  I'm not happy.

jcore58
Returning Member

Mortgage interest deduction issues

Was this issue fixed for the 2021 TT version?  When inputting all the mortgage information and questions, I get a "congratulations $x,xxx of mortgage interest was deducted"... my issue is it's $20,000 off.  Basically TT only says the HELOC interest was deductible, not the mortgage loan too.  Maybe the final returns have the correct amount, but this pop-up message is incorrect!

Cynthiad66
Expert Alumni

Mortgage interest deduction issues

Let's not assume that the forms are reporting correct on the return.  We will ensure that you are receiving your allowable Mortgage interest deeduction.  With the expected amount being off by more than $20,000 there must be a reporting issue.  

 

First we need the specifics of your mortgage interest situation.  Sounds like you had a Mortgage and a HELOC.

 

But be aware that home equity (HELOC) interest is only deductible if the money was used to buy or improve the property that is secured by the loan

 

When you have more than one Form 1098 with the refinance info and both show the same balance of the mortgage, TurboTax adds the amounts together. And that may lead to a limitation of the deduction, because the balance is then overstated. To avoid this, make sure that you're not reporting the same mortgage balance twice.

 Try following these steps to enter the Mortgage Interest Deduction:

 

If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms. 

Follow these steps to enter your mortgage info:

  1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender).
  2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
  3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage insurance, these boxes will be blank on your forms and you won’t enter anything.)
  4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

 

 

 

@jcore58

 

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