TurboTax didn't ask for my mortgage balance - $750K interest deduction limit issue

Thanks for explaining this. So if I understand correctly, since my mortgage was taken out in November 2022, I'm definitely subject to the $750K limit. Does that mean I can only deduct the interest proportional to 750K/925K of my total mortgage? The software should definitely prompt users about this!

That's exactly right - you would multiply your mortgage interest by the ratio of $750K/$925K to get your allowable deduction amount. So you'd be able to deduct about 81% of the interest you paid. You're absolutely correct that tax software should make this clearer. While the software companies do update for tax code changes, some of these calculations require additional user inputs that aren't always prompted for clearly. For 2025 filing, it's always good practice to review major deductions like mortgage interest and medical expenses to ensure you've provided all necessary information.

Does it work with other tax documents too or just mortgage stuff? I've got some complicated investment income this year and I'm worried my regular software might miss something.

I'm a bit skeptical about these document analysis services. How accurate is it really? And does it actually integrate with tax filing software or do you still have to manually enter everything it finds?

It works with pretty much all tax documents! I've used it for W-2s, 1099s, investment statements, and even business expense receipts. It's particularly good at identifying deductions that many tax software platforms miss or don't clearly prompt for. The accuracy has been spot-on in my experience. It's not actually a filing service - it analyzes your documents before you file and gives you a report of potential issues, missed deductions, or audit risks. You then use that information when filing with your regular tax software. For me, it found several issues that would have triggered an audit, so it was definitely worth using.

Wait, is this for real? I've been trying to reach the IRS for days about a similar mortgage deduction question. How does it actually work? Do they just keep calling until they get through?

This sounds like a scam. Nobody can get through to the IRS faster than anyone else. They have those phone trees and wait times for everyone. I'd be very careful about giving any personal info to a service claiming this.

It's completely legitimate! They use a system that navigates the IRS phone menus and holds your place in line. When an agent picks up, they connect the call to your phone. It's pretty straightforward but really effective. They don't ask for any tax information or personal details - you just provide your phone number for the callback when an agent is ready. Once you're connected, you speak directly with the IRS agent just like you normally would. I was skeptical too until I tried it, but it saved me hours of time on hold.

This is super helpful, thank you! I just checked again and found that section buried in the menus. You're right - the questions were there, but the software didn't prompt me to go through that section when I entered my 1098 information. I had to manually navigate to it. Is there any way to know what other important tax questions might be hidden like this? I'm worried about what else I might be missing.

I'm glad you found it! Unfortunately, this is a common problem with most tax software - they have the capabilities to handle complex situations, but don't always guide users to the right sections. For major deductions like mortgage interest, medical expenses, and business deductions, I always recommend exploring all the sub-menus manually rather than just following the guided workflow. Another approach is to run a "review" of your return before filing - sometimes the software will flag potential issues like this during the review process. One last tip: if you've already filed with the incorrect mortgage interest deduction, you might need to file an amended return (1040-X) to correct it. Given the loan amount you mentioned, it could make a significant difference in your tax liability.

I've used FreeTaxUSA for years and actually had a similar experience. For my rental properties, they were super detailed, but for my primary residence mortgage over $750K, I had to figure out the limitation myself and manually adjust the deduction. I think they assume users know about this limitation, which is obviously not realistic for most people.

That's interesting about FreeTaxUSA handling rental properties well but missing this for primary residences. Maybe I should give them another look for my rental property taxes next year. I think the core issue is that all these software companies make assumptions about what the average user knows about tax code. The reality is most of us are using tax software precisely because we don't understand all these details and limitations! We rely on the software to guide us through everything relevant to our situation.