Question

Can anyone explain how, after entering a deduction with form 1098, my CA refund would go down?

Forum|Forum|6 years ago
February 11, 2020
1 reply
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TurboTax Deluxe Online

The amounts at the top of the screen for your refund ( in green) or an amount you owe (in gray) will adjust as you go through the program, so don't worry too much about them until you have completed your return and run the Review/Check at the end of your return.

There were some tax law changes for residents in California and New York, which limit certain itemized deductions, such as property taxes, which may appear on your 1098.

Please see this TurboTax Help Article for more information on these changes: Why did my Refund Decrease when I enter Deductions?

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H

hiltscj1Author

Thank you for your reply, Karen.

Understood re amounts adjusting as I go but I still don't understand how adding additional mortgage interest would increase my tax liability for CA. How does that make sense? If anything, I could see it having no effect if, say, I had already reached a cap for interest deductions or something but why would my liability increase significantly (more than the additional interest amount) for attempting to claim it?

Thank you