It looks like the mortgage interest entered is not enough to cover the MCC entry.
In the online version run through the step-by-step for entering the form 1098 once again. At the end you will wrap up deductions and you will get to a screen that compares your standard deduction to your itemized deductions. Under the graph you will see an option to look at your itemized deductions. Select that and take a look at the mortgage interest showing there. There may be a clue to where the error is being triggered.
In the desktop version follow these steps to get to the "Tax & Interest worksheet."
1. Click "Forms" in the upper right of page
2. Find the "Tax & Int Wkst" in the list on the left hand side
3. If not there, click "Open form"
4. Select the "Form 1040 drop down"
5. Select the "Schedule A drop down"
6. Select the "Tax and Interest worksheet" and open form
Scroll down to the interest area. You will see the entries there including the "Yes or No" for the interest limitation. You can also gain some insight into the possibilities for the error by looking at the entries on that form.
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