Hi
I am in the same situation. I did an IRRL refinance in 2019 and that loan was then sold back to my original loan holder. This gave me 3 1098s as well. My original mortgage was for 331k. The refi was for 336k just due to loan costs. I thought that the problem was that the new loan was higher, and that the additional money wasn't used to improve or buy the house, but it very well could be because TT is adding together all 3 loans.
I also called for help. I talked with the woman for over a half hour. She wasn't very much help, but I have to give her an A for effort. The solution that I came up with on my own, was to divide the first loan amount by the second. 331xxx/336xxx = 98.5%. I then added all the interest from the first loan, plus 98.5% of the interest from the next 2 loans, and entered that on lines A2 and 5e of the Mortgage Interested Limited Smart Worksheet. This reduced my deduction by about $180. When I had Turbotax check for errors, it passed, and I e-filed my returns. I could not get the window that asked if the first loan was paid off. I'm running desktop Premier version. I live in California too, and didn't have a problem with my CA 540, but this isn't right, and Turbotax needs to fix it.
