Deductions & credits

These steps do not work because the TurboTax form "Ded Home  Mort" always double counts the outstanding mortgage principal line.  For example, if you refinanced a $600K mortgage there should be no limit to deductible interest, but if you enter two 1098s for the same property it will think there is a $1.2M average balance and limit the interest.

 

You can fix it manually, but I am quite surprised that Intuit/TurboTax did not program an effective way to enter refinances into the software.  I imagine that refis are quite common.

 

I challenge anyone to provide a step-by-step process to enter information from 2 1098s as received from the lender and not have it double count the principal for average balance purposes.