I used the $1 method and mailed out my tax returns yesterday on the deadline. In my case, both my original loan and the refi loan were under $750k. So the entire interest amount from both loans plus amortized points were fully deductible. The total amount is correct on the tax form. So I doubt it will raise a flag with the IRS. Besides lenders supply them with mortgage statements.
It's very disappointing that TT didn't address the issue by updating their algorithm to correct calculate the deductible interest amount. I just hope there weren't many unsuspecting TT customers who had less interest deducted on their returns because of the bug. If one of my loans were more than $750k, I would have had to find a more sophisticated solution. The burden should rest on the customer.
