I have two 1098 for my primary. It is because I refied so I am receiving two 1098 from the same bank. When I enter the first 1098 with mortgage interest of $20k, my outstanding mortgage principal of $825k, it says my federal tax due is $4k. When I enter the second 1098 with mortgage interest of $5k, my outstanding mortgage principal of $800k, my federal tax due now increases to $6k. In the past, whenever I enter more mortgage interest (multiple 1098s), I am increasing my deductions, and my federal taxes due will decrease.
It does not make sense that I owe $4k when my mortgage interest is $20k but I owe more, $6k when my mortgage interest is $25k. I put that it is a heloc or refinance, not original mortgage. It asks me if I took out cash and I say no, however, I think there is a glitch because if I go back and say yes, then it will decrease my federal tax due and increase my state refund. If I go back to the screen where it asks me if I took out cash, and this time I say no, then it doesn't change back my refund amount. It appears to be a system glitch.
Something isn't right. I'm going back and playing with it and if I delete the $5k, my state refund will increase by $500. If I add back the $5k, my state refund will decrease by $500. Can someone explain what is going on for TT Premier 2020?
