Within Forms, take a look at the 1st Home Mortgage Interest Worksheet (Home Int Wkst) and review the "Limitation Smart Worksheet" box. Mortgage interest is in Line 1 and Line 9 indicates "acquisition debt". Does the value in Line 9 look correct? If you believe that all interest is deductible then Line 9 = Line 1. If the value of home is > $750K and not grandfathered, then Box 9 < Box 1 by the ratio of 750/outstanding mortgage principal (I think).
Now take a look at the 2nd Home Interest Worksheet and review #s like you did on 1st worksheet. If Line 9 seems correct, then the total interest deduction should be the Line 9 values from both worksheets summed.
Now go to the Tax and Interest Deduction Worksheet (Tax & Int Wks), and review the Mortgage Interest Limited Smart Worksheet box. You can modify line A2 and put in the sum of Line 9 from the 2 prior worksheets. This A2 line is incorrectly calculated by TT. It's a refinance not a second home so the mortgage interest does not need to be limited again. The prior worksheets already determined the limits.
