Skip to main content
March 9, 2023
Question

How do I get through to Turbo Tax that the Mortgage Interest deduction is calculated wrong (software bug)? The TT tax experts agree it's incorrect.

  • March 9, 2023
  • 1 reply
  • 0 views
No text available

1 reply

PatriciaV
Employee
March 9, 2023

Please clarify what calculations you have identified as being incorrect for the Mortgage Interest deduction.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
zombooAuthor
March 9, 2023

This is a long-standing issue with Turbo Tax. One that I have tried numerous times to notify Turbo Tax about. I have described the problem over and over again to Turbo Tax tax experts, CPAs and even the Turbo Tax Community (last year). When I do explain the issue well enough, they agree there is an issue and tell me they will report it but nothing happens and no way to follow up with the same person. I have to start over again. If I am wrong about, I would appreciate an explanation why. With that said, here goes...

 

Turbo Tax does not divide the average of the acquisition portion of my mixed-use mortgage balance by the average total mortgage balance to figure the percentage of my total interest that I can deduct on schedule A. This is required for mixed-use mortgages and/or when the mortgages are limited to $750,00 / $1,000,000. Instead, Turbo Tax divides the year-end acquisition debt by the year-end total debt. In addition, Turbo Tax does not round the percentage to three decimal places as required by Pub 936.