Issue with "Limited interest and points must be entered"

Forum|Forum|6 years ago
January 31, 2020
6 replies
14 views

I have an error during Smart Check that says "Tax and Interest Deduction Worksheet: Limited interest and points must be entered" and then the second line says "Limit Int/points on 1098 and a blank empty box that apparently I have to fill in with some number? What do I enter here in this box?

Background: I have three 1098s... First 1098 is where I purchased my house with $4,010 in points but only $191in interest, the second 1098 is from when the first mortgage company sold my loan before the first payment was even due, the third 1098 is from a refi 9 months after purchase where I reduced the interest rate 1.25%. The above error may be related to those 1098s.

Thank you!

coloradovrsAuthor

Level 2

Hey TurboTax, can I get some help on this question from yesterday?!

Anonymous

I have the same issue. Multiple lenders due to loans being assumed by others and refinancing. Interested in the answer.

Itguy4123

Level 2

I've encountered this issue as well. Seems to be due to multiple 1098s for the same mortgage and the outstanding amounts being added together and exceeding the threshold.

Itguy4123

Level 2

I was able to solve this by switching to forms view and unchecking the box on the form incorrectly indicating that needed to limit interest/points as I didn't meet the stated conditions.

fuzzystingray

Level 2

I am encountering this also - it appears that TurboTax is not letting me itemize my deductions due to this "limit int/points" issue. I cannot find a box to uncheck that will fix this in form view. Can someone provide more specific instructions to fix this, please?

Hoyden

Level 2

I'm having the same issue. I have 2 1098's for 2 separate properties. I'm using TT Online. I've deleted and re entered the 1098's with the same issue during review. How do I get into forms so I can uncheck "Yes" on "Does you mortgage interest need to be limited:"???

lauragrace08

Level 2

Hello everyone. I am having this issue as well. Has anyone found any working solutions?? I am an online user so do not have the forms option described. I have deleted and re-entered my 1098's to try to get the "do any of these situations apply to you?" and it does not show up. This is super frustrating as I can't figure out a workaround here, and it's the only hold up I have from filing!

Thanks in advance to anyone who can help!! I'm really unsure what to do from here if I can't find a solution.

YetiBash

Level 2

Has anyone found a solution to this? I'm getting this prompt in 2021. I'm using the online version of Turbo Tax and it won't let me change the "Yes" to "No". I tried entering 0 in the input box that it was prompting me with and now my refund has dropped ~$1.5k. I deleted my 1098s and re-entered but it appears it has saved that old value and I can't get the prompt now.

LeanneVi2

Level 2

YES! I have this issue to. I actually did my taxes a second time under a new user name because I couldn't figure out the issue! Please fix this!

Anonymous

How do you get to the forms view? Can't find it anywhere.

Malashaan

Level 2

I am also having this issue. As people have figured out, it's triggered by having refinanced my home loan in 2020. There needs to be a fix or official workaround to this. I'm using the online version and can't figure out any way to fix it.

Editing to add that the work around I used was to set the principal balance of the loan I took out this year to $0. That doesn't comply with TurboTax's instructions, but it makes logical sense as what matters for all other loans is the balance on Jan. 1, 2020. As long as you're not near the $750k limit for principal, it really doesn't matter - all that goes on the actual tax return is the amount of interest you paid.