No, you never add two loans or averaged it. If you refinanced your home loan, the existing loan was paid. In Turbo Tax, you must answer the question as much as you can as this will determine if your loan exceeded the amount allowed. Here are some steps that may help with your situation:
- Login to your Turbo Tax account.
- Under Federal Taxes, in Deduction and Credit tab, click "I'll choose what I work on".
- Under "Your 2020 Deduction and Credit", click update or start next to "Mortgage Interest, Refinancing, and Insurance".
- Under " Home loan deduction summary" click edit and enter the lender's information, one at a time.
- Click continue until you get to the screen " Is this loan secured by a property of yours?"
- Click Done.
- The next screen is a question " Do any of the situation apply to you?". Your answer here will determine if your loan exceeded the allowed loan amount.
