Question for TurboTax Users (Mortgage Interest Write-Off)

[Stevendsmith]

My wife and I are using TurboTax for the first time since owning a home. We’re in the middle of the process and currently show a tax due of $1,200. We expected that number to go down significantly once we entered the amount of interest paid on our mortgage (around $5,000). But it didn’t go down at all.

I thought we were able to write off our interest payments.

Can anyone comments on this?

Thanks!

[Tyler Durden]

1. didn't work for me, either. let me know if you get an answer!

[nini]

2. sounds like you have it set to take the standard deduction..

instead of itemizing. :shrug:


I didn't use turbo tax so I don't know the exact menus to go to and fix that. Good luck!

[MissB]

4. Now *that* makes sense.

[MissB]

3. It should make a difference, I'd think.

At least, when I play around with the number in my turbo tax file, it changes the amount I owe. :shrug:

I have no idea.

[DrDan]

5. you probably have not yet exceeded the standard deduction

it will keep you there (standard deduction - I think $10K this year for a married couple) until that is exceeded.

What is the total of all itemized deductions?

[Stevendsmith]

8. Ahh, that could be it. I'll have to check on the total. (n/t)

[Gormy Cuss]

11. Don't worry until you've completed the whole deduction section

Turbo Tax is quite good at steering you in the right direction on including points, real estate taxes, etc.

It also will alert you when your itemized deductions aren't worth as much as the standard deduction.

[Momgonepostal]

10. That's the case with us

Our interest is less than yours and out of the few years we've owned this house, we've only had enough deductions one year to itemize. Most years having mortgage interest hasn't lowered our taxes at all.

[XNASA]

6. Don't forget to deduct your local real estate taxes as well. nt

Taxes are tax deductable.

[LSK]

7. i did the taxes manually and got a nice refund from mortgage interest

So maybe theres something you are doing wrong. I am single thou. Maybe a setting for Schedule A?

You can also deduct your property tax.

[hfojvt]

9. as a married couple

it is quite possible that your two standard deductions are more than your itemized deductions. I have never itemized since I believe, perhaps erroneously that I do not have enough deductions to make it worth my time. Itemizing, in my view, is for rich people who get to write off their mortgage interest on their $600,000 homes.

So, no, you do not get to write off your mortgage interest, but it is a deduction. However, the standard deduction for a couple is $9,700 so you need another $4,700 in deductions before that interest does anything for you. Turbo tax should be asking you about deductions and making these calculations.

[newportdadde]

12. Turbo Tax will use the greater deduction, standard or itemized.

My wife and I have had this house 6 years, only the first year when she was still in school and the interest rate was higher did it matter for my taxes and I could itemize.

Now with one child and my wife staying at home and a refied mortgage down to 4 3/4% I don't even get close to using an itemized deduction.

Ow and the mortgage interest deduction while nice should not be used as a rationalization for a larger loan or not paying off your house early. No point in paying out a dollar to save 30 cents when you could not have to pay the dollar at all.

[Blue_In_AK]

13. I've itemized for years...

...but this year we didn't exceed the standard deduction.