TT NOT RECOGNIZING MORTGAGE INTEREST DEDUCTION

[VolvoGirl]

Don't see anyone mentioned this......

There is a new question or two you have to answer to get the mortgage interest deduction.  Like maybe put in your ending balance.  Make sure you answer that the loan is secured by the property.  Go back through that section.

One User said.....Two questions on the last two data entry pages for that item:  one asking if the loan was secured by the property purchased with the mortgage (my home) and the next asking if the money had been used to build or purchase the home.  I suspect both these are qualifying questions for deductibility.  

[wolga]

Hello,

I'm experiencing the same issue w/TT not recognizing home mortgage interest. I've removed biz use of home completely and it's still having the same problem.

Did you find a solution?

Thank you

[ThomasM125]

The most likely reasons for the mortgage interest not being recognized as an itemized deduction would be the home office deduction, rental property expenses, or the answers to your mortgage questions.

The first thing to do would be to see if the interest was entered as a part of your home office deduction or rental expenses. Then, go back through the mortgage interest section and make sure you qualify for the deduction based on the size of your mortgage and the use to what you put the mortgage proceeds to.

If the mortgage interest is being used as a rental expense or part of a home office deduction, the deduction amount allowed for itemized deduction purposes will be limited.

If you deleted a home office deduction or rental property deduction for mortgage interest, you may need to delete the home mortgage interest entry in the "Your Home" section and re-enter it.

[Buddog]

As Joe Biden would say, "Here's the deal jack..."

Trying to answer your SPECIFIC question, no ratholes please, here is how I SOLVED the problem:  There seems to be a disconnect within TT so that Box 7 on your 1098 needs to be checked after all.  Somehow within TT an unchecked Box 7 does not then look at Box 8 to confirm your address, hence even if you indicated that the loan was secured by your property, the benefit does not come through.

Said differently, checking Box 7 resulted in my mortgage interest listing correctly in the Home Interest Worksheet, which then listed correctly in Schedule A, which then allowed my deduction to reduce my tax liability.  This little Box 7 exercise was not needed for my 2019 taxes, but for some reason the "bug" appeared for 2020.

[Renbuild1]

I think you are partially right.  There is a cap of $10,000 on the amount of taxes paid that can be deducted.  However, I don't think there is a cap on the amount of interest paid on mortgages as long as you keep the total amount of borrowed money below certain maximums.

[DaveF1006]

it depends. Do you have more than one 1098 form?