Skip to main content
March 30, 2021
Question

Excess mortgage interest

  • March 30, 2021
  • 1 reply
  • 0 views

Hello!  I have excess mortgage interest reported on my federal return on Form 8829 since I am not itemizing.  I am itemizing for my CA state tax return. 

 

Unfortunately, my Schedule A for CA is taking the whole interest amount rather than what typically would be shown on my Schedule A interest (interest paid - deductible amount for business.)

 

The only way I can get this reported correctly is if I categorize it as deductible mortgage interest on Form 8829.  Technically, it is in the wrong category for the federal - but then it flows through the CA return correctly.   Any suggestions?

1 reply

March 30, 2021

That is a good solution.  California does not follow Federal guidelines and allows full mortgage interest and real estate deduction for all amounts paid in the year without limitation. 

 

California Itemized Deductions