I have a loan over $1m which was refinanced twice in 2020.
The first refinance (refinanced and paid off in 2020) included points, not shown on 1098.
I've merged three 1098s into one and then added a second with zero for most boxes and the correct figure for the points not shown on 1098.
TurboTax figures the federal tax incorrectly and the CA state tax correctly. Then, it puts in a positive adjustment for points and negative adjustment for interest in the state return. The points are correct on federal and state, and the (negatively) adjusted interest results in the correct final interest figure on state, but the federal interest is (interest + non-1098 points), which is the reason for the negative adjustment -- this is what made me dig in and spot the double-count of points on federal.
i.e. Schedule A, item 8a, interest and points on 1098, includes the points which are *NOT* on the 1098 (portion attributable to $1m of refinanced pre-2017 loan balance).
Schedule A, item 8c, *ALSO* includes the same portion of the points which are *NOT* on the 1098.
CA Adjustments 8a is the negative adjustment from ($1m loan balance worth of interest and incorrectly included points) to ($1.1m loan balance worth of interest only).
CA Adjustments 8c is correct - points attributable to $100k of loan balance.
Help?! Taxes are due tomorrow. (Also: how do we trust that TurboTax is doing the right thing with hundreds of stock transactions, which I can't hand-calculate, when it is so obviously doing the wrong thing with such a trivial thing as mortgage interest? The stock data also looks very questionable but there's no way I'm going to redo it all by hand, by tomorrow.)
