If you have an amount in box 2 of your form 1098 put it in as that is correct per IRS instruction as you mention. Once you get done entering all forms 1098 and click "Done" you will get to a questions asking if you exceed the mortgage limits.
"Do any of these situations apply to you?"
- Mortgages that were taken out on or before December 15, 2017 and they total more than $1 million ($500,000 if Married Filing Separately).
- Mortgages that were taken out after December 15, 2017 and they total more than $750,000 ($375,000 if Married Filing Separately).
If you answer "No" inspite of what the worksheet calculations are, the interest deduction will not be limited. If you answer "Yes", then you will need to manually calculate the mortgage interest deduction using table 1 on page 12 in publication 936 and enter the amount in the box provided. The worksheets in either case are not filed; they are for calculations and records only.
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