Still getting Error - Deductible Home Mortgage Interest Worksheet

[DalePickle]

I decided to not wait for a TT fix, which may or may not come. I did the calculations in my a spreadsheet and I am going to create a fake 1098 entry in TT with the correct interest amount. This should be fine in the end as TT is only using all of this to populate the calculated mortgage deduction on Schedule A.

[AmyC]

The mortgage interest calculations are meant to ensure the rules are followed for deductible mortgage interest and is just a worksheet, not a part of the return. The schedule A holding the final answer is what goes to the IRS. Creating an entry that you know is correct, is fine.

@lh64

@DalePickle

[srsjis]

Does someone have the best number to call regarding this issue?  Mine does not give me an error message but doesn't count my second home for mortgage interest at all.

[MichelleLO]

Please follow the instructions in this TurboTax FAQ to contact Customer Support: What is the TurboTax phone number?

@srsjiis

[wavemoon]

I added $10k+ mortgage interest, but the return didn't change at all. WTF is going on? I've been trying this back and forth for hours. 

Not sure if there's some caching issue, any way to clean up the data for mortgage interest and start from all over again?

I'm a 8-year old customer of TT, PLEASE FIX THIS **bleep**!!!!!!!!!! 

[frizz]

This worksheet is used to determine your tax deductions. If the amount added along with your other deductions is still below the standard deduction it is not going to change anything. It will only help if you itemize. 

[wavemoon]

I removed property tax and all mortgage interest items, and tried to re-add the mortgage interest.

Now, it doesn't change the tax due/refund at all! 

How do I change from Standard to Itemized? 

Thanks. 

[MarilynG1]

Click this link for steps on How to Switch from Standard to Itemized Deductions (or vice versa).

[srsjis]

I have itemized already.   We are not over the maximum outstanding mortgage.   Everything is entered correctly and we are qualified to have both houses interest accounted for by TurboTax is only counting one.   Apparently there is a worksheet for 2nd homes that is having problems, according to TurboTax and when I spoke to an agent they said it was still a problem that will be resolved.by March 15.   Of course, previously on here someone said it would be resolved.by Feb

15

[wavemoon]

I've already read it several times. but still looks there is no way to switch, do I have to wrap up everything before the switch?

So frustrating, apparently something is wrong. This is my 8th year using TT online, and my tax situation is rather similar to last year. 

Please fix this ASAP!

[wavemoon]

Hi,

How to see the worksheet? I'm using TT web version.

Thanks. 

[RaifH]

To switch to itemized deductions, you do have to select Wrap up tax breaks. You can always go back in later if you need to make changes. Once you hit that button, TurboTax confirms some information then shows you the Based on what you just told us, itemizing or standardizing your deductions is best for you and gives you the totals. If you want to switch, there's a Change my deduction button. 

There is no way to see the home mortgage interest worksheet prior to paying for TurboTax Online. If something does not seem to be calculating correctly, and you refinanced this year, please follow these instructions:

1. In the Federal > Deductions & Credits section of your return, scroll down to Your Home and click Revisit/Start next to Mortgage Interest and Refinancing (Form 1098)
2. Add another 1098 or edit an existing one.
3. Answer the questions and enter or verify the information as it appears on your 1098. Make sure you have both the box 1 amount and the property taxes if they are reported on the form.
4. Answer What kind of property is this loan secured by?
5. Answer We didn't pay any points .
6. Answer No for the loan you refinanced out of to Let's see if this is the most recent form for this loan.
7. Answer Yes to Is this the original loan used to buy your property? for the original loan

For the second 1098, you would do the same except answer Yes in step 6. For Step 7, you would say No to Is this the original loan then Yes to Is this loan a HELOC or a refinance? and answer to Did you take cash out?

Note that if you took cash out and did not use it to improve the home, that portion of mortgage interest is not deductible.

After you enter both mortgages, both should be flagged with Needs review. For the old mortgage, you want to enter the date you refinanced and the amount you owed on the loan when you refinanced. When it asks Do either of these apply to this loan? Answer Yes if you originally purchased the home prior to December 15, 2017, or the second situation applies. 

For the new mortgage, you can leave the date of payoff blank and enter the balance as of January 1, 2022, which you should be able to get from your mortgage statements. Again, answer Do either of these apply to the loan? 

At that point, TurboTax should correctly calculate your loan limit and deductible mortgage interest correctly. If something still does not seem right, then we can look into it further.

@wavemoon

@srsjis

[NotAnAccountant2]

I was on the phone with TT, and a nice support technician named Mariah gave me another solution.

When the error pops up during Smart Check, it takes you to the Home Mortgage Interest Worksheet.
The error says to enter a number for Line 3. Beginning Balance.  But if you click on the box, it won't let

you enter any information.

Solution:  Right click on the box where you want to enter the number. From the Pop Up menu, choose Override. (I think there's a second "Yes I want to Override" window.)  I was then able to enter the Beginning Balance. 

Hope this can help others. Cheers

[leadmcenroe]

@dingo803 - I am running into the same issue. I sold a primary home that was well below the $1M limit and financed a new primary home that exceeded the $750K limit. TT is adding both loan balances together and comparing that to the $750K limit. The result is my deduction is less than half of what I was expecting. 

Is there an example online of a more detailed allocation calculation that would pass scrutiny?

[Nevada707]

Quicken became a buggy mess under the management of Intuit.  After Quicken broke away, they fixed many software bugs and Quicken became a much better product to use.  Same story with Intuit Payroll - a buggy mess.  And we all know about TurboTax.  Obviously Intuit has little integrity and little concern for the welfare of their customers.  A disgusting corporation who cannot be trusted.  Sad.