Hi there -
We had a total of 4 1098s this year for our home. The first 1098 was from Lender #1, the second 1098 was from Lender #2 due to the transfer of the loan (not refinance), the third 1098 was from a refi, and the fourth was for our most recent refi. Our loan amount was under $750k so our entire mortgage interest ($30k) was allowed in our Federal Itemized deductions. No issues with our Federal calculations.
When it's time to do our CA Return, TT is showing we need to do -12k mortgage interest adjustment! This doesn't make any sense as we should be able to deduct the full amount in California. Our loan is under $750k and the CA threshold is 1 million. I've read online that this might be a Turbo Tax error since it might be combining the loans since it doesn't know that each loan ended before a new one was issued. This is frustrating! Someone please advise! Thank you.
