There is still hope the issues with the mortgage interest deduction will be fixed. I discussed this with a TurboTax representative at length yesterday who seemed really interested to understand and correct the problems. She called me three times yesterday for for information. I also referred her to a written description I posted in a survey response. I hoping to hear back from her soon.
TurboTax offers the user the option to enter the amount of deducible interest instead of letting TurboTax figure it for you but this option has software bugs. The amount of interest you enter is transferred to Schedule A but deductible points are omitted. In addition, for California residents, the total mortgage debt is treated as non-acquisition debt on the worksheets causing the additional interest adjustment on state Schedule CA (540) to be negative. Again, you can calculate and enter the adjustment if you understand California's adjustment limits but you still have the issue of omitted points on Schedule A.
