Question

Amending Return to Add Mortgage Interest

Forum|Forum|5 years ago
April 24, 2021
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I am amending a federal return in Turbo Tax to add the mortgage interest from a 1098 form, however, this results in increased federal taxes. What is going on?

KathrynG3

It depends on whether it is best for you to itemize deductions or claim the standard deduction.

TurboTax will automatically calculate which option is better for your circumstances, but you can override this and claim the other option which would increase your federal taxes.

For example, for a filing status of married filing jointly for taxpayers and spouses who are both not blind and who were both born after January 2, 1956, the standard deduction is $24,800.

If the total itemized deductions including the mortgage interest addition are less than $24,800, the taxes would increase.

However, taxpayers are allowed to file their tax returns using the most advantageous options. It would appear that it would be more advantageous to you to cancel the amend and keep the return as originally filed.

For more information, see: How does the Standard Deduction differ from itemizing deductions?