I have the same problem with TurboTax Deluxe CD which would not asking if the mortgage has been refinanced or not. So I switched to File TurboTax Online and works perfectly! At the Federal calculation: The software would asked if the mortgage has been refinanced and If you say yes then it would be calculated as zero balance at the end of the year; thus only letting the last Loan to be used as the balance calculation. Then at the end when you do the State Calculation it would give you question of how much balance at the end of the year for each mortgage that way it would adjust again at the State level.
My regret is that even that I already paid for the CD version, I still has to pay separately for the online version! The online would NOT give you credit for the price you paid for the CD. I bought the CD at Costco and they are not allowing refund for Software CD.
Good luck guys!
