Question

How do I get TurboTax to apply the 750,000 debt limit for deductible mortgage interest? It is currently considering all my interest deductible, which is incorrect.

Forum|Forum|5 years ago
July 7, 2020
1 reply
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I bought and sold a home in 2019. The sale took longer than expected, and I owned both for a few months. Accordingly, my total debt for 2019 exceeds the 750,000 limit. However, when I enter both 1098's, TurboTax considers *all* my mortgage interest paid in 2019 qualified for deduction, instead of just the interest up to the 750,000 limit. I don't know how to get it to apply the correct multiplier to my mortgage interest paid. I have tried entering and re-entering the 1098's several times.

TurboTax Premier Online

VictoriaD75

For desktop versions:

In Forms view, locate and click on Tax & Int Wks on the left from the forms list
On the form, scroll to Mortgage Interest Limited Smart Worksheet
Click on YES to the right of the question, Does your mortgage interest need to be limited

For online versions, after entering the 1098 interest information, continue through the screens and TurboTax will ask you if the interest needs to be limited.

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M

malcdi2Author

Thanks! I am using the Premier online version, and do not get asked this question at any point between starting and filing. It just includes all of the interest in the deduction, which is over-claiming.