Question

Mortgage Interest not being capped on mortgage above $750K

Forum|Forum|1 year ago
March 18, 2025
1 reply
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I was looking at Schedule A and noticed that the mortgage interest was not reduced like it had been last year since our mortgage exceeds the $750K limit. Is this a TurboTax bug or was the mortgage cap eliminated this year?

I reviewed all the TT entries from the 1098 and its accurate. The mortgage interest amount on the 1098 is flowing in full through to Schedule A in full without any capping. Last year it was capped by about 20%. This is a primary residence with no other mortgage, helocs, etc in place.

When running the error check in TurboTax nothing pops up. I am using the desktop version, 2024 Premier edition.

UPDATE: Looks like this a TurboTax bug. I opened the Deductible Home Mortgage Interest Worksheet and line 18 shows the correct capped mortgage interest amount that should be reported on Schedule A, line 8a. But this amount is NOT what is being reported in Schedule A. Schedule A, line 8a is showing the full amount of the interest that was entered in the step-by-step from the 1098.

LindaS5247

I would like to take a deeper look at this. However, I need a diagnostic file, which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”

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