AMT in Turbo Tax for Mortgage Interest

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FB01
Posts: 496
Joined: Fri May 20, 2011 12:36 am

AMT in Turbo Tax for Mortgage Interest

Post by FB01 » Thu Feb 22, 2018 2:07 pm

Hi,

I did not pay any AMT but somehow my mortgage interest is showing on AMT. I am using Turbo Tax and it automatically updated line 45 (AMT).

Is that correct or am I missing something?

Thanks,
JR

Wagnerjb
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Joined: Mon Feb 19, 2007 8:44 pm
Location: Houston, Texas

Re: AMT in Turbo Tax for Mortgage Interest

Post by Wagnerjb » Thu Feb 22, 2018 4:04 pm

If you paid any AMT, the amount would be reflected on line 45. You say that you didn't pay any AMT, but the number on line 45 was updated. Which is it?

Did TurboTax generate a form 6251?
Andy

FB01
Posts: 496
Joined: Fri May 20, 2011 12:36 am

Re: AMT in Turbo Tax for Mortgage Interest

Post by FB01 » Thu Feb 22, 2018 6:30 pm

Wagnerjb wrote:
Thu Feb 22, 2018 4:04 pm
If you paid any AMT, the amount would be reflected on line 45. You say that you didn't pay any AMT, but the number on line 45 was updated. Which is it?

Did TurboTax generate a form 6251?
Yes...i did not pay any AMT. Turbo Tax generated form 6251. That is what is confusing me

-JR

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grabiner
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Location: Columbia, MD

Re: AMT in Turbo Tax for Mortgage Interest

Post by grabiner » Thu Feb 22, 2018 10:04 pm

Tax software generates Form 6251 to see whether you need to pay AMT, but it won't file the form if you don't owe AMT.

The reason mortgage interest is reported on Form 6251 is that the rules for deducting mortgage interest on regular tax and AMT were different in 2017. Interest on home-equity loans not used to buy, build, or improve your home is not deductible under the AMT; interest on up to $100K is deductible under the regular tax. (In 2018, these loans are no longer deductible under the regular tax.)
Wiki David Grabiner

FB01
Posts: 496
Joined: Fri May 20, 2011 12:36 am

Re: AMT in Turbo Tax for Mortgage Interest

Post by FB01 » Thu Feb 22, 2018 10:56 pm

grabiner wrote:
Thu Feb 22, 2018 10:04 pm
Tax software generates Form 6251 to see whether you need to pay AMT, but it won't file the form if you don't owe AMT.

The reason mortgage interest is reported on Form 6251 is that the rules for deducting mortgage interest on regular tax and AMT were different in 2017. Interest on home-equity loans not used to buy, build, or improve your home is not deductible under the AMT; interest on up to $100K is deductible under the regular tax. (In 2018, these loans are no longer deductible under the regular tax.)

However, the AMT which it calculated is getting added to my payable tax. In short, the return I should be getting is less by AMT amount.

-JR

ryman554
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Re: AMT in Turbo Tax for Mortgage Interest

Post by ryman554 » Fri Feb 23, 2018 1:49 am

So you owe AMT. Nothing confusing about it. Why do you think you should not owe AMT?

It's.not the mortgage that's doing it. Look at the form to see the real reason.

AMT is annoying, to be sure. Enjoy 2018 and the AMT relief.

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grabiner
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Re: AMT in Turbo Tax for Mortgage Interest

Post by grabiner » Fri Feb 23, 2018 7:04 pm

FB01 wrote:
Thu Feb 22, 2018 10:56 pm
grabiner wrote:
Thu Feb 22, 2018 10:04 pm
Tax software generates Form 6251 to see whether you need to pay AMT, but it won't file the form if you don't owe AMT.

The reason mortgage interest is reported on Form 6251 is that the rules for deducting mortgage interest on regular tax and AMT were different in 2017. Interest on home-equity loans not used to buy, build, or improve your home is not deductible under the AMT; interest on up to $100K is deductible under the regular tax. (In 2018, these loans are no longer deductible under the regular tax.)

However, the AMT which it calculated is getting added to my payable tax. In short, the return I should be getting is less by AMT amount.
Check that the entries on Form 6251 are correct. If you don't have a home-equity loan (or a mortgage which is a cash-out refinance), you shouldn't have an adjustment for mortgage interest. If you gave TurboTax wrong information, it will make the wrong entry on the form.
Wiki David Grabiner

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