Thank you for your reply @BarbaraW22 . I double-checked to ensure that I entered all the information correctly in regards to the points you mentioned. Fortunately, for the federal return, TurboTax asks if the mortgage limit applies to me (my mortgage balance is below the limit, so I can answer 'no' and the full mortgage interest is deducted). However, on my California return, TurboTax is still adding the balances for all 3 "versions" of my mortgage in 2019 (the original, the refinance, and the transfer) on the 540/540NR Deductible Home Mortgage Interest Worksheet. As a result, the total "home acquisition debt on the date it was last secured by [my] home" is 3x the actual balance, and it limits the amount of mortgage interest deducted on my state return.
However, TT does allow me to manually adjust the "Total Home Acquisition Debt and Grandfathered Debt." To correct the miscalculation, could I enter the outstanding mortgage principal as of 1/1/2019 there?
