I had same problem as yours. I received three 1098 forms. Two were from same bank (original loan and refinance) and the third one from the 2nd refinance (with a different bank). When I entered all 3 on Turbotax separately, I noticed I was getting less CA refund because all my mortgage balances were being added up. Even though my loan balance was always less than 400K, the worksheets were showing 3 different loans. Not only that, on the federal and California schedule A forms, the mortgage interest from my 2nd refinance was not even counted.
So, after scouring the forums for answers, I finally figured out the best work around for this problem. So, on my Mac desktop version on TT I first entered all three 1098 forms beginning with the oldest 1098. Then I went to the forms and manually changed the worksheets.
1. For my original loan, I entered the date loan was paid off and entered the ending balance as 0.
2. I did the same for my 1st refinance.
3. On my second refinance, I just entered the ending balance on the worksheet.
Now when I looked at the Schedule A from Federal forms and CA forms, the total interest calculated is accurate and I am getting full deduction for it on CA refund.
Also, on CA deductions worksheet, now it’s showing only 1 active mortgage and 2 are closed out with exact delineation of whether the loan is original or refinance and whether loan is from before or after 2017. The average of the loans does look wonky but it’s just on worksheets and don’t think will be passed on to IRS.
Others can chime in whether this is acceptable workaround.
