Due to tax reform changes there is a limit to the amount of state, local and real estate taxes combined total you can claim ($10,000 or $5,000 if married filing separately).
Can I deduct property (real estate) taxes?
There is a limit to the amount of mortgage you can deduct.
Your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.
I understand that if there is cap of $10,000 for married filing together then the total to reflect "deduction and credits page" to show lesser than the actual real estate taxes paid, but here in my case it shows more than the actual real estate taxes paid.
Be careful that you did not enter it as part of your 1098 and again separately. This is the most common error I see on real estate taxes.
If you also have an entry related to rental property or the home office deduction, and you entered the real estate taxes in that section, any unused portion will apply to your itemized deduction for real estate taxes. If you enter it again separately, you will be counting the same expense more than once.
I have verified it and I did not re-enter my real estate taxes.
On the Deduction and Credits page where we enter the 1098 forms details, all the math looks good and the number are properly adding up for Mortgage Interest & Mortgage Property Tax. As I press the done button and it comes to summary of all tax breaks, its shows a higher number for the line item "Mortgage Interest and Refinancing (Form 1098)".
It not adding up for me. Can I put screenshots here ? I do not know if its a privacy thing.
Were there points and/or Mortgage Insurance Premiums added from the forms 1098? Those would add to the totals as well.
Yes, I have paid "Mortgage Insurance Premium". I had refinanced during 2019, so I had multiple 1098 forms. All the forms have this PMI premium amounts, and when added to Interest it matches the amount shown on Deduction/Credit page. Is that expected ?
Our AGI is above $109,000 (Married filing together) , doesn't this PMI deduction completely phase out and get eliminated since we are above AGI $109,000 ?
Thanks in Advance,
Ash