If a single 1098 still creates an issue, I think the issue is the cap of the maximum mortgage interest amount that we can claim as "interest paid" under NYS IT-196. For example, Federal Sch. A allows all paid interest up to $1M home mortgage for joint filings, but NYS IT-196 puts a cap on the actual paid interest amount. This is something that TT has to update.
Consolidating into one 1098 may bypass the glitch if the total mortgage interest paid in 2021 is less than NYS IT-196 cap and there is no mortgage insurance on 1098. NYS does not allow mortgage insurance premium into the deduction.
