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Turbotax didn't adjust my mortgage interest amount on my loan. The loan is more than IRS limit of 750k. TurboTax is including the full interest amount. This a know error?

Forum|Forum|4 years ago
April 12, 2022
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Turbotax asks for the full interest amount. It specifically says that it will adjust it itself. Should I calculate the adjusted amount myself and input that in TurboTax instead?

TurboTax Premier Online

Best answer by RaifH

No, do not adjust the amount yourself. TurboTax will do it if you enter all the information regarding your home loan. If you purchased the home before December 15, 2017 a $1 million limit applies, even if your most current loan is a refinance as long as you did not take cash out.

If that is not the reason your loan is not being limited, you may want to delete and re-enter Form 1098. When going through, check your answers to the questions regarding your loan, particularly Let's see if this is the most recent form for this loan. If you have a more recent 1098 for this loan, TurboTax only considers the outstanding loan in applying the mortgage limit.

R

RaifHAnswer

No, do not adjust the amount yourself. TurboTax will do it if you enter all the information regarding your home loan. If you purchased the home before December 15, 2017 a $1 million limit applies, even if your most current loan is a refinance as long as you did not take cash out.

If that is not the reason your loan is not being limited, you may want to delete and re-enter Form 1098. When going through, check your answers to the questions regarding your loan, particularly Let's see if this is the most recent form for this loan. If you have a more recent 1098 for this loan, TurboTax only considers the outstanding loan in applying the mortgage limit.