This workaround did not work when I tried it. Our situation - 3 1098s: A refi in which we took out a new mortgage slightly larger than 750k AND took some cash out when we refied; we also paid off a home equity line (a decent % of which was for expenses other than home improvements. Trying to combine the 1098s resulted in Turbotax kicking us out of itemizing deductions and saying we should take the Standard Deduction.
What worked? Going into the interest worksheet form for our original mortgage (home mortgage interest worksheet) and clicking on the box in Line 9 that said we refied/paid off loan/sold property (you click on this box if any of those applied); ditto for the worksheet for our home equity loan. Until I did that, Turbotax was allowing us to deduct only about 55% of our mortgage interest. Checking the box in the individual mortgage interest worksheets kicked that percentage up to roughly 75% and the numbers in the Schedule A Home Mortgage Interest Worksheet listing all 3 of the loans connected to this refi (old mortgage, old HELOC, new mortgage) are logical.
People have complained in other posts that the problem was adding up all of your various mortgages -- if you go into the actual IRS forms, you'll see that that is exactly what is supposed to happen. The issue is making sure that the individual mortgage worksheet(s) indicate which loan or loans is/are paid off. I am still not sure that this is the correct solution but the numbers now make sense at least.
We have used Turbotax for years and this is the first year we've ever had any issues with the software. Good luck to all.
