olipetry
Returning Member

Refi - average mortgage balance calculation is wrong for 2021 Tax year

Hi.

 

I just followed the instructions on how to enter multiple 1098s for a mortgage that was sold off several times in 2021. After I enter the 1098s and make sure that the mortgage that was sold off has an ending balance of 0 I get somewhat of a refund (still to low). Once I then follow that with the additional information in the subsequent step that the original mortgage is dated back to 2019 my refund disappears and instead I owe taxes when it should have increased since I can write off the interest on the first 1M. 

 

Reading through these forums this seems to have been buggy for years now and I am disappointed to see that it is still broken for Tax year 2021.

 

How can I get the proper deductions for both Federal and State?

 

Oli Petry