Hmmm. I'm not sure that the TT rep, "Jeremy", was being upfront with you about never hearing about the mortgage interest problem, or else the database of TT's customer service logs is in terrible shape.
From Jan 31-Feb 4, I was in daily contact with a TT enrolled agent about this exact issue concerning the handling of mortgage interest deductions for loans refinanced in 2020. He completely understand the problem I was facing and could replicate the problem when he created a return. (TT prevents me from posting the case number here - I've tried multiple times.)
My case was closed because the TT workaround (of combining all 1098's into one 1098 on TT) did work to correctly report my mortgage interest paid on Schedule A. Nonetheless, I asked the enrolled agent to escalate the situation within programing. He agreed that a programing revision was needed and said he would escalate the problem to his manager. So, why couldn't Jeremy find this case?
BTW: The latest TT recommendation for reporting amortized points on a 2020 refinance loan also worked for me. They recommend creating a second 1098 within TT, declare 0 interest, etc., and then on the next screen enter your data re points. This did result in the correct amount of amortized points appearing on my Schedule A.
The big question for me is about e-filing.
Does the IRS receive only the Schedule A or does e-filing include all of the supporting worksheets? If only Schedule A is filed (as one would if mailing a paper return), then the above lame workarounds won't matter. The mortgage interest total on Schedule A will equal the total interest reported to the IRS on multiple 1098s.
But if the IRS sees evidence of these weird workarounds, do we end up being audited?
