So there is now a footnote (multiple 1098s for a refinance in 2020):
(quote)
Multiple 1098s related to a Refinance done in 2020
1. Input just 1 1098 to cover the refinance.
2. Gather all of your 1098s related to the refinance.
3. Separately add up the amounts in Boxes 1, 5 and any property taxes paid
4. Box 1, Box 5 and Property Taxes- Input the total amounts for each on the refinanced debt
5. Box 2- Input the amount of debt on 01/01/2020.
6. Box 3- Mortgage origination date- Input the oldest date on your 1098s related to the refinance
(unquote)
There is also a footnote for loans above $750K funded after December 15, 2017:
(quote)
Taxpayers with loans above $750,000 funded After December 15, 2017
TurboTAx calculates the interest limit based on the inputted loan amounts and the mortgage origination date inputted on Box 3 of the 1098.
Loans originating after December 15th 2017 are limited to $750,000. Loans funded between October 13, 1987 to December 15, 2017 are limited to $1,000,000. (limits are half for those filing Married Filing Separately) This means the deductible interest is limited to what was paid on $750,000 or $1,000,000 depending on the origination date.
If you input a mortgage origination date after December 15, 2017 TurboTax will limit the interest paid based on a $750,000 loan limit.
You may be able to qualify under the $1,000,000 limit even if your existing loan funded after December 15, 2017 if you meet one of the following scenarios:
Scenario 1: Refinance of Acquisition Debt
You purchased the home before December 15, 2017 and have refinanced the debt. If you loan is above $750,000 please input the Mortgage Origination Date as the date you first purchased the home.
Scenario 2: Purchased the Home Right at the Cutoff Date of December 15, 2017
You meet ALL of the following criteria:
-Written binding contract to purchase the home dated before December 15, 2017 that intended to close before January 1, 2018
-Loan must be for a principal residence (not a vacation or second home)
-Home purchase must have been completed before April 1, 2018
If you meet the above criteria please make sure you input your loan origination date before December 15, 2017 to reflect you began the loan origination and your loan qualifies under the $1,000,000 limit.
(unquote)
These notes taken together apply to my particular situation and when I used the recommended method, it appeared to yield what I believe to be the correct result in my case. This seems to be a "workaround" and it would be better if the software itself contained more explanatory steps, however at least it fixed the problem as far as what I can file.
