New computer and haven’t reloaded 2020 TT, but think TT doesn’t have good fix. My previous posts are related to multiple refinancings, which this is not. Enter two mortgages separately maybe entering later mortgage first so TT will ask follow up question on ending balance for each loan. Entering later mortgage first will also give you you TT calculated interest deductible on larger loan at average principal amount (slightly larger deductible amount and you can add the additional 10K to get a total. Then I believe if you go to Home Mortgage Worksheet in TT Forms you should find the calculated interest 75% of total interest paid you. Find amount on TT worksheet and override total to calculated amount of (I) 75% of 20K on average principal plus (ii) 10K. Then enter combined amount as a manual override on TT mortgage interest worksheet, which will transfer to Schedule A.
IRS allows you to attach explaining Schedule , but not necessary at this point. Not trying to cheat on taxes and just maintain the supporting schedule just in case IRS audits or asks.
You can find right schedule to override deductible interest amount by hitting source on active number. Believe you can right click on Schedule A or TT Mortgage Interest Deduction Worksheet to find active cell to override.
Post additional questions. I’ll try to download 2020 TT to help if above guesstimate doesn’t work for you. TT hasn’t fixed this issue for 2019 or 2020. So some manual override. Won’t be issue in 2021 unless you refinance. Don’t know if TT will fix in 2021 for your case. And also multiple refinancings
