Question

Mortgage balance decreases deduction

Forum|Forum|2 years ago
April 5, 2024
1 reply
0 views

Married filing jointly. My first 1098 is my home mortgage with balance just over $400,000. I try to add a HELOC with a separate 1098 and when I enter in the balance of the HELOC the deduction from that paid interest of the HELOC goes away as I enter the heloc balance in box 2, though the combined mortgage and heloc is well under 750K total. I do not understand this behavior.

TurboTax Home & Biz Windows

Z

zomboo

Please complete the entry of your 1098s and hitting the 'Done' button in the 'Mortgage Interest Deduction' section. The refund meter may be giving you a false indication of the final deduction. If this is not your issue, reply and let us know.

D

dapperduaneAuthor

Finishing the section did not change the outcome. To further illustrate my problem... The first 1098 is my primary mortgage, 400k, it calculated the deduction properly. I then entered in the second 1098 for my HELOC, 190k, it calculated the deduction appropriately until I enter the mortgage balance in box 2. I tried different amounts to understand the behavior. I can enter in any value less than or equal to $1000 and the deduction doesn't change. As soon as I enter $1001, the deduction decreases by $3 and continues to decrease by $3 for every dollar over $1000 entered in box 2. As you can guess, the deduction quickly goes away if my HELOC balance is over $1000.

On another note, I tried combining the two balances and interest paid in a single 1098 and it calculated the deduction as expected. So what is happening when I try to separate my 1098s??