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April 19, 2021
Question

Some of my eligible mortgage interest is being disallowed by TurboTax. How do I troubleshoot and fix that in TurboTax when mortgage was refinanced in 2020-TurboTax error?

  • April 19, 2021
  • 1 reply
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I think TurboTax is phasing out some of my mortgage interest incorrectly.  Is TurboTax adding together my old (paid off) mortgage and my new loan by mistake?  That is the only way it could trigger the mortgage interest phase out over $750K.  How can I check this calculation in TurboTax?

1 reply

April 22, 2021

Possibly.

 

If you had no balance left because you paid it off, you would need to enter zero for the ending balance for that loan.

 

You can enter your 1098 Forms into the program in the federal section of the program.

  1. Select Deductions & Credits
  2. Select Mortgage Interest and Refinancing (Form 1098) 
  3. At the bottom of the next page, select Add another 1098
  4. Be sure to answer the questions carefully for each 1098

Be sure that you have entered $0 for the loan that was paid off in Box 2 - Outstanding mortgage principal on the screen titled Let's get the details from your Home loan 1098.

 

Ending balance

 

You will also want to select that the loan is no longer there at the end of the year is marked as paid off during the year.

 Loan paid off

 

Please see the link below for more information on the mortgage interest deduction.

 

Deducting Home Mortgage Interest

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