Question

Mortgage Interest Deduction and Prop Tax not working. Forces Standard Deduction even though credits are way over $25k.

Forum|Forum|4 years ago
February 23, 2022
6 replies
0 views

I swear there was some major debacle with a mortgage interest bug last year too!

I'm sitting here looking at at least $29k-33k in itemized deductions and my federal owed won't move at all because it's using the standard deduction (supposedly).

This is even accounting for the $10k SALT limit on property taxes. Otherwise my deductions would be in the $40k range.

Is this a bug you're working on? I've done my taxes for 17 years and this is now the second year in a row i have issues with Turbo Tax Home & Business not being able to correctly calculate mortgage interest (2x).

TurboTax Home & Biz Windows

KrisD15

The "rules" regarding Mortgage Interest being deductible changed several years ago and information needed to calculate the proper credit is not listed on the 1098, which makes the interview lengthy and confusing.

Since you are using TurboTax Desktop, you might want to sign-up for an email update regarding this worksheet.

It should be resolved by the end of this month.

Link for sign-up

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dasmodulAuthor

Okay. I'll keep an eye out later in the month and just did the sign up.

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dasmodulAuthor

Any update on this folks? It's March 11 now and lot of us need to file but can't because we literally can't complete the biggest deduction that affects how much we have to pay? Is there a backup plan on instructions to somehow do the worksheet manually if you can't figure out the fix? Thanks

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mglauner

Yes, you are able to make entries directly on the Mortgage Interest Worksheet in FORMS mode (and on Schedule A).

Click this link for instructions on completing the worksheet from the IRS (see page 12).

Can you manually switch from Standard to Itemized Deductions?

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dasmodulAuthor

Running into this same EXACT issue with 2022 return. It's forcing standard deduction instead of itemized even though my deductions are way over $25k limit. I forced Itemized mode as you suggested last year and this time it's not working. In fact, during its summary comparison vs 2021, it's spewing out errors and listing all the amounts as $0 (even though they are not). Not sure what to do.

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SummerSunshine2026

YES! Same issue!!! They need to fix this ASAP!

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mingcheli

You are right. My itemized deduction should be $36,622 after accounting for SALT limit of $10,000 (vs. $25,257). TurboTax Premium version forces me to use $30,700 for senior standard deduction. I have used Premium for more than a decade, this is serious bug.

LindaS5247

You can select the alternative deduction by doing the following in TurboTax. I'm not sure what you have tried, but this method allows you to switch your deductions from standard to itemized and vice versa.

Go to "Deductions and Credits" and select "I'll choose what I work on"

Answer the prompts and you will come to the screen that says "You've chosen the itemized deductions" (or "You've chosen the Standard Deduction" in your case). This is where you will make the change.

It will look like this:

Select "Change My Deduction" and then select which deduction you wish to take.

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support.

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douglascjacobs

I have the same issue as above with my 2023 Form 1040. My deductions include the max of $10,000 for taxes and $9844 in charitable contributions. Yet there is no Schedule A in my system for 2023 and the tax return reflects the standard deduction of $15,700 for my age as a single over 65 year old taxpayer.

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Cynthiad66

Sounds like your computer may be experiencing a loop. Let's clear your cookies, history and cache' then reboot.

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On rare occasions, they may make your browser think you already did something that you still need to do. To fix that, you'll need to delete (clear) the cookies from your browser.

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@douglascjacobs

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bmfox11

I had the same problem. I fixed it by toggling to the forms view by clicking the Forms button on the top right. I navigated to Home Interest Worksheet and selected Yes to the question "Is this loan secured by a residence of yours". Turbo Tax had left this question unanswered. The interest was then included in my itemized deductions.