With regards to your first question, that is how I did it, and my return was accepted by the IRS and was paid already. I used the comment "Due to known problem with Turbo Tax when calculating mortgage interest on Refi's" when prompted for explanation. Not sure if I'll be audited or not, but my overall numbers are correct, so I'm ready. That being said, this is not professional tax advice. Your position is more complicated than my one simple refi. I would consider NOT using Turbo Tax in your situation and turning to a tax guy instead. FYI: I also looked at my 2019 return, and TT had the same issue. I am now having to file an amended return to 2019 to get back almost $2k! Shame on TT for having this problem unresolved for over a year!
