Deductions & credits
You can enter them separately. If the total amount of your mortgage balance exceeds $750,000, then the amount might be limited.
Mortgage interest deduction limits
Since you just refinanced and if your total loan balance did not exceed $750,000 throughout the year, you will need to review your input. When you enter the information into TurboTax, be sure to do the following to ensure you are able to deduct the full amount you are entitled to.
- Go to the federal section of the return
- Select Deductions & Credits
- Select Mortgage Interest and Refinancing (Form 1098)
- Select Add a Lender
As you go through the input screens, be sure that you have entered $0 for the loan that was paid off in Box 2 - Outstanding mortgage principal on the screen titled Let's get the details from your Home loan 1098.
You will also want to select that the loan that was refinanced and is no longer there at the end of the year is marked as paid off during the year.
Please see the following link for additional information on entering the refinanced mortgage interest expense.
