So under Wages & Income (federal tax) I have to enter mortgage interest expense for renting a room out in my house. Let's say the amount is $1000 on my Form 1098. Do I enter $1000 as I see below in Turbo Tax?
The confusion comes later in Deductions & Credits where it asks again )see screenshot below) for Box 1 of Form 1098. Do I enter the same $1000 here or do I split $500 in the wages & income calculation for rental properties and royalties and $500 under Deductions & credits? This is unclear. In H&R block I designated that 50% of my property was rented out and the software automatically calculated which portion of my mortgage interest went to rental property and which portion went to standard deductions.
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In the rental section under the Property Profile, you can indicate that you have rented a part of your home. Then TurboTax will ask you if you wish to allocate the expenses yourself or have TurboTax calculate the amount.
Okay so I indicated that I rented out 50% of my property (the other room) and input the numbers straight from my 1098 (mortgage interest statement).
Afterwards in the deductions section, it asked for my 1089 info again so I typed it straight from the same 1098.
Can I assume everything is handled properly? Just hoping that theres no issue that I entered the full amount 1098 info twice (once in the rental expenses as a 50% rental and a second time in the deductions)
Is that ok?
No, if you selected 'Yes' in the above screen, enter the full 1098 amount then TurboTax will allocate the personal mortgage interest portion to the Schedule A for you. You won't enter in both places.
If you selected 'No', to the question above, then you would enter the rental share in the rental section and the personal share in the Deductions & Credit section.
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