How do I manually change a setting in Schedule A, Tax and Interest Deduction Worksheet?

[mlambros]

I refinanced my home mortgage in 2020 and I think that is causing the TurboTax software to check the box saying that the amount of interest I can deduct is limited and then saying that I "must" enter the limiting amount. However, because I refinanced and did not use the loan for anything other than my mortgage, I do not need to limit that amount, but the software won't let me change that in the worksheet. (I confirmed that I do not need to limit my interest deduction by reading through IRS Publication 936, which is very clear about that.) I think it is an error in the software since it is not correctly aligning with the IRS instructions. I'm pretty frustrated that I cannot find out where to manually make the change after trying for an hour. I already deleted and re-entered my 1098s, so maybe there is something else going on and I'm wrong, but I can't figure it out.

[RayW7]

The error is probably related to the way you entered your Mortgage Interest, try to re-enter the 1098's as shown below.

First, delete both 1098's if you  started to enter them. Do NOT try to edit them.

Enter the older loan first, enter box 2 as it is reported, 

THERE WILL BE A SCREEN ASKING "WAS THIS LOAN PAID OFF OR SOLD IN 2020?"  CLICK "YES" 

(this screen will not appear if you go back and edit)

Continue through the interview

Next, enter the second 1098

If box 2 is blank, enter zero, otherwise enter what is in box 2. DO NOT LEAVE IT BLANK

Continue through the interview questions. Do not select that it is a HELC. 

Since you clicked that the first 1098 was paid off or refinanced with a different lender, the mortgage balances (box 2) will not be added together. 

Is there a limit to the amount I can deduct?

Yes, your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.

For tax years before 2018, you can also generally deduct interest on home equity debt of up to $100,000 ($50,000 if you're married and file separately) regardless of how you use the loan proceeds.

For details, see IRS Publication 936: Home Mortgage Interest Deduction.