Question

I added a third mortgage(second home) interest amount to my deductions and my taxes on turbo tax went up instead of down, does anyone know why?

Forum|Forum|3 years ago
April 18, 2023
1 reply
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TurboTax Online

Employee

The program may not have realized it was a second house and was determining that your balance is over the limits and reduced your mortgage interest allowed. Let's go over the rules:

IRS | Second Home

IRS | Home Mortgage Interest

You may need to calculate your allowed interest using Table 1 Worksheet to Figure Your Deductible Mortgage Interest. Then you can enter the correct, allowed amount and mark that your balance was some number below the limit of $750,000 to get around the program.

The IRS only receives the final answer on the form, not all the program workings trying to determine the correct answer.

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