What is this tax and interest deduction worksheet

[MarilynG1]

If you don't have a Mortgage, you can skip this section.   If you're going through TurboTax step by step, the program presents all types of Income and Deductions to you.

You can click on Deductions & Credits at the top and select  'I'll choose what I work on'.  Then you'll see a listing of deductions that you can look at individually.

Here's more detailed info on Credits & Deductions to help you. 

[Buceador]

i need to update/change the "Does your mortgage interest need to be limited" to No.

but it's not letting update the form. Where can this be changed?

[DMarkM1]

Yes, you cannot change that checkbox in the "Forms Mode."  There is an entry somewhere that is causing the limitation and it is usually related to entering multiple forms 1098.  Try working in the step-by-step mode.  For the best results you'll need to delete all the 1098 entries and start fresh. 

Follow these steps.

Be advised the mortgage worksheets are not part of the forms that are filed with the IRS.   Follow these steps to correct/eliminate the limitation on your mortgage interest deduction:

1. Deductions and Credits
2. I'll choose what I work on
3. Update Mortgage Interest topic
4. Delete both 1098s
5. Done
6. Update the Mortgage interest topic
7. Yes
8. Put in oldest loan first
9. Primary or Secondary Home as needed
10. None of the above
11. Enter form information from old loan
12. Continue
13. No points to deduct
14. Yes Most Recent if this is the only loan on this home; No if you have another 1098 for a loan on the same home
15. Answer the Refi questions as needed
16. Continue
17. Add a lender
18. Same steps as above for the new loan
19. Continue
20. Done
21. If there is a limitation introduced you'll be asked to review the entries to enter any payoff information
22. Now you should see the page explaining the limitation
23. You can click the help me with this link and see that if you take your loan balance at the beginning of the year box 2 old loan and add it to the balance of new loan at end of year (loan amount 1 Jan 2023) and then divide by 2.  If the average is below 750,000 that means all of your interest is deductible. 
24. In the "Your Adjustments" box enter the total interest paid for 2022 from box 1 of your 1098s
25. Continue

If you need you can re-post with specific loan (1098) information.

[Buceador]

first thank you!

I did followed your steps, although I intuitively deleted both my 1098's before posting my request for support.

After entering the last 1098 I get this message...
"right now, the standard deduction saves you the most on taxes"

and i checked the "Tax & Int Wks" form yet again and it still has the limited check box checked.

"Does your mortgage interest need to be limited" ...YES

i suspect i may have to delete this version and start from scratch...

[Buceador]

just to be clear i did see that question come up the first time and i assumed incorrectly and did not enter anything the that box.

[PatriciaV]

Do you believe you should NOT be claiming the standard deduction? In other words, you believe your allowable mortgage interest will take your deductions over the standard amount. Is that correct? If not, the answer about the mortgage interest limitation is irrelevant if you claim the standard deduction.

@Buceador 

[Buceador]

correct i always itemize my deductions each year. I checked my last year's records and that form has "No" checked marked (i.e. not limited). I also started over fresh (deleted my current tax file) and imported my 2021 tax return to start fresh. Entered all my income and jumped to the deductions to enter my interest paid. didn't seem to make a dent in my tax amount owed. Plus the Tax & Int Wks still has that box checked as "Yes".

I'm dumbfounded ...there has to be some "field" causing this.

[JohnB5677]

Please check what is posted to your tax return.  Based on your situation, the standard deduction may have been to your advantage.

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.

The deduction entry is on line 12.

Please compare with the Standard Deduction Rates for 2022.

For single taxpayers and married individuals filing separately, the standard deduction is $12,950 in 2022.

For married couples filing jointly is $25,900, and 

For heads of households, the standard deduction is $19,400.

If you're at least 65 years old or blind, you can claim an additional 2022 standard deduction of $1,400 ($1,750 if using the single or head of household filing status). 

If you're both 65 and blind, the additional deduction amount is doubled.

@Buceador 

[Critter-3]

The program gives you the standard deduction to start with and that is automatically reflected in the Refund-O-Meter.  If you enter enough expenses to itemize deductions then the Meter is adjusted for the increase in the deductions but you will only see a difference for the amount above the standard deduction.  So if the itemized deduction total is only $500 more than the standard deduction you would not expect much difference to the bottom line ... $500 @ the 10% tax bracket will only yield a $50 change.  

[joseywatts]

Still confusing?

[joseywatts]

I'm still so confused  ?? I  can't finish my Taxes because I don't understand what to put into this Block???  I'm not getting any where..  I want to file my Taxes NOW and I can't because it won't let me, until I fill in this block??

SOMEONE HELP ME  !!

[DoninGA]

@joseywatts You are posting on a thread that has various questions and answers over the past three years.

What block are you referring to?  What form are you referring to?  What type of income or expense are you trying to enter?