I bought my home in 2016. In 2020, I refinanced. Now in TurboTax after I enter all my interest from my 1098's, TurboTax is only allowing me to deduct about 50% of my total mortgage interest. I am itemizing and my total deductions exceed $24,000. The mortgages before and after refinance were a little above $800k. A simple refinance should not cause me to lose half my interest deduction (about a $12,000 deduction loss).
I have reviewed all my 1098 answers and they all seem to be correct. The Ded Home Mort form shows the 2016 loan and the 2020 refinanced loan. On that worksheet in Part 2 - Deductible Home Mortgage Interest, it adds up the total of all mortgage balances and divides by .494502 (Line 11 qualified loan limit divided by Line 12 Total of Average balances of all mortgages.
After reading numerous articles, my understanding is that the new $750k limit doesn't apply to me. Even if it does, I should still be able to claim at least 90% of my interest, not just 50%. What am I missing?
