I'm a long-time homeowner. In 2020, I refinanced my home. Due to the refinance, and switching mortgage banks, I made mortgage payments to three different banks in 2020:
- Bank A (original mortgager): 8 monthly mortgage payments, January - August
- Bank B (temporary mortgager): 1 mortgage payment, October
- Bank C (new mortgager): 2 monthly mortgage payments, November - December
I have received 1098 statements from all three mortgage banks. Now I'm doing my 2020 taxes through TurboTax Online.
When I enter the 1098s for Banks A and C only, it shows me this summary:
Notice All Deductible interest is $17,446
After that, I enter the 1098 for Bank B. This is the new summary it shows me:
Notice that All Deductible interest has now dropped to $8,908.How is this possible? Just entering the 1098 for Bank B increased my tax bill by thousands of dollar because it switched me from itemized to standard deduction!
I don't understand how reporting that I made another mortgage payment (of which most was interest) caused my deductible interest to drop precipitously rather than increase.
Is this a bug in TurboTax?
