Why would my tax liability go up when I add a 2nd 1098 (Mort Int Statement, loan transferred) w/additional interest? It went up when I added the ending mort balance.

[davehend]

My tax liability went up about $300 when I added a 2nd 1098 (Mort Interest Statement). It seemed that the end of 2018 mortgage balance is what triggered the increased liability.

If anything, additional paid mortgage interest should never increase liability, right?

[SherylSTaxExpert]

The amount of mortgage interest is now capped based on mortgage principal amounts of $750K and greater.  The link below will explain in detail the changes as a result of the recent tax reform.

https://turbotax.intuit.com/tax-tips/home-ownership/deducting-mortgage-interest-faqs/L4a9KF9mI

[davehend]

But would adding interest paid on a mortgage ever increase one's tax liability? This mortgage in this situation is in the $330k range.