California allows a deduction on mortgages up to a million dollars. That is bigger than the federal amount. So the California deduction, if anything, should be going up not down. You should go back through the deductions and credits section to make sure that all of the numbers that you entered are correct.
If that doesn't work I would recommend phoning TurboTax to ask for help.
Here is a link to the TurboTax Phone Number.
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