I did a refinance in Dec 2020. I have two 1098.

For the first lender's 1098, I entered the info in Turbotax and get deduction for Federal and CA taxes. For the second 1098, after I entered a small amount (like $500), my federal tax was increased by $2400+ and my CA tax was increased as well. 

 

Why I have to pay more tax for mortgage interest I paid? Is it a Turbotax bug?

 

Thanks,