Question

There appears to be something wrong with the mortgage interest section - only allowing me to use 518 dollars when I paid over 15K in interest?

Forum|Forum|4 years ago
April 2, 2022
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TurboTax Online

Can you clarify what is reported to you? Did you have more than one Form 1098 this year? Did you refinance or buy a new home? Was there one 1098 that had $518 of mortgage interest and the other had the $15,000 and TurboTax just didn't pick that up for some reason?

S

scootersmomAuthor

Turbo Tax just picked up the one 1098 this year - have always had two, one for the mortgage, the other for the 2nd mortgage loan I took out. For some reason turbo tax is just picking up the lower one (518) and ignoring the 15K one - total interest paid is overr 16K between the 2 and turbo tax is only picking up the smaller one

R

RaifH

I would delete out both and then re-enter them. If the two outstanding mortgage principals do not add up to more than $750,000 then there is no reason your mortgage interest would be limited as long as you used the mortgage to build, buy, or improve the house. When you re-enter them, make sure you answer them in this way:

Answer the questions and enter the information from your Form 1098s
Answer Primary home for both loans on What kind of property is this loan secured by?
Answer Tell us about any points.
Answer No for the original mortgage to Let's see if this is the most recent form for this loan.
Answer Yes for the newer loan to Let's see if this is the most recent form for this loan.
1. Answer No to Is this the original loan used to buy your property?
2. Answer No to Is this loan a HELOC or a refinance?

At that point, it should include the interest reported on both 1098s. If your loan balance exceeds $750,000 (the sum of Box 2 on the 1098s) TurboTax will ask some follow-up questions to determine how much interest must be limited, if any.