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Excess mortgage interest

Hello!  I have excess mortgage interest reported on my federal return on Form 8829 since I am not itemizing.  I am itemizing for my CA state tax return. 

 

Unfortunately, my Schedule A for CA is taking the whole interest amount rather than what typically would be shown on my Schedule A interest (interest paid - deductible amount for business.)

 

The only way I can get this reported correctly is if I categorize it as deductible mortgage interest on Form 8829.  Technically, it is in the wrong category for the federal - but then it flows through the CA return correctly.   Any suggestions?

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1 Reply
JeffreyR77
Expert Alumni

Excess mortgage interest

That is a good solution.  California does not follow Federal guidelines and allows full mortgage interest and real estate deduction for all amounts paid in the year without limitation. 

 

California Itemized Deductions

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