California mortgage & Home Equity Interest

Forum|Forum|5 years ago
January 24, 2021
1 reply
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If I max at the standard deduction, does that mean I show put my mortgage interest in the adjusted for interest on my state taxes. Since I cannot itemized, I do not believe I get a mortgage interest deduction, so I may need to adjust my stat interest from my 1098?

JotikaT2

It depends.

If I am understanding your question correctly, you are trying to determine if you should even enter your mortgage interest in the federal input section of the program since your itemized deductions are lower than your standard deduction. You are not able to itemize on your federal return but you are entitled to itemize on your state tax return.

If this is correct, you should still enter your mortgage interest and all other itemized deductions on the federal input screens. Even though you cannot itemize on your federal return, the program will pull this information into your state tax return and utilize the itemized deduction within California if you meet the threshold to itemize. You would not need to make any adjustments to the state interest from your Form 1098.

California does have a lower standard deduction than the IRS, therefore, although you can't itemized for federal purposes, you may still qualify to itemize on your state return.

Please see the following link for more details on the deduction limits for California.

California standard deduction and itemized deduction amounts

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