Form 1040 Schedule A (Itemized Deductions) - Mortgage Interest Deduction and Limitations

Form 1040 Schedule A is completed to report itemized deductions for U.S. taxpayers. Homeowners are generally entitled to a tax deduction for mortgage interest paid on their principal residence, however, limitations apply if the average balance of the outstanding mortgages is $750,000 or more during the year.

In this example, we have a taxpayer with a mortgage on his principal residence which exceeds those limits. So, he must calculate the reduced amount of deductible mortgage interest on Schedule A.

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[meechathao]

Thank you so so much for showing the worksheet step by step. It’s really confusion to me when doing the worksheet by following the instruction. I calculated mine off by $28, 000 so thank you again.

[jorgeroperti]

My name is Jorge and I am one of your listeners, nice to meet you. I am a CPA in Argentina and I have just realized that none of my clients have paid the additional 1% tax required in Miami-Dade County. The tax is called the "Homeless Tax" and is paid by those who have alcohol licenses. I understand that the tax is retroactive. Can you help me? I need to find the best way to handle this with the ultimate goal of reducing the penalties for all my clients.

[purestars]

How did you get 1, 120, 492 (EOY balance)? This number is not on F1098. Please explain. Thanks.

[maneeshkumar-dgzd]

how did you got 1, 120, 492 (EOY balance) can you explain ?