My 1098 Shows i paid : Insurance: $2,209.00 Interest: $4,702.67 Taxes: $5,683.42 But when turbo tax adds it add up, it only displays a deduction of $6,912.00

[thornton1680]

What is going on?

[LindaH2]

Hi,

The insurance is not tax-deductible It also looks like your deduction for State Taxes (real estate and income taxes) could be limited to $10,000 and be causing the lesser amount. I'm assuming the insurance is home-owners insurance.

[JohnB5677]

The tax deduction is calculated differently from the interest deduction.

• The $2,209.00 is mortgage Insurance (commonly called Points). This is a form of interest.
• Add this to the $4,702.67 and you will get
• $5.682.67 ( I'm not sure of the small difference).
• This is the interest portion of your itemized deductions.

Generally, there are four types of deductible taxes:

• State, local, and foreign income taxes
• State and local general sales taxes
• State and local real estate taxes, and
• State and local personal property taxes

The cumulative total can not exceed $10,000

[rjs]

It's not clear what you are looking at. Where exactly do you see $6,912? Post a screen shot if you can, but be sure to omit any personal information. This is a public web site.

As LindaH2 said, homeowners insurance for your personal home is not tax deductible, so that would not be included in any deduction. Mortgage interest and real estate tax are two separate deductions. They would not be added together, except in the total of all your itemized deductions.

As a guess, what you might be seeing is the deduction for state and local taxes. That would include your real estate tax plus either sales tax or any state and local income tax that you paid or that was deducted from your pay on your W-2. It would not include mortgage interest. The total deduction for state and local taxes is capped at $10,000 ($5,000 if you are married filing separately).

[rjs]

JohnB5677 made a good point, but the total in his post is mistaken. Insurance of $2,209.00 plus interest of $4,702.67 is a total of $6,911.67. Since all figures on a tax return are rounded to whole dollars, that would appear to be the $6,912.00 that you are seeing. Again, real estate tax is a separate deduction. It would not be added to the mortgage interest.

But you need to clarify whether the $2,209 is mortgage insurance or homeowners insurance. Or is it homeowners insurance that you mistakenly entered as mortgage insurance? It seems high for mortgage insurance. Mortgage insurance is deductible as additional mortgage interest, but homeowners insurance is not deductible at all.