Deductions & credits

This does not appear to be a bug at this time. It's important to answer the questions appropriately for TurboTax to recognize that one loan is a refinance and the other was the original loan.  If you go through the questions carefully, you should obtain the correct results.  (see the image below for the specific page)

• Helpful link: How to handle multiple Forms 1098

 Current solution if you continue to experience this: My advice right now is to enter only the existing balance with the open mortgage and lender as of December 31st (current mortgage) in your Form 1098 entry. Because of the limitation on the mortgage interest deduction you should put $0 or $1 in the other Forms 1098 entry. This will solve the problem and technically the IRS does not require that you fill out 1098s because they are not required to go with the tax return. This should resolve your issue and you have your documentation which in all likelihood you will not be asked to provide it later.