It depends. It's possible that you entered this in such a way where the mortgages were combined to total more than $750K, thus limiting your mortgage interest. Try this solution that is offered in this Turbo Tax post written by JessicaB. Since these are for year 2019, here is how to enter.
- For the first 1098, you will indicate that there was no loan balance on 01/01/2021 even if one is listed on the form.
- For the second 1098, you will enter the loan balance as the outstanding mortgage principle as of 01/01/2019 even though the mortgage began in mid year. In this instance, the mortgages will not be combined. If your outstanding mortgage is less than $750K, your full interest paid from both 1098's will be fully deductible.
- Lastly, the article says you should not select the box that says the mortgage was paid off or refinanced with another lender.
- Let me know if this works and you are able to move past this point.
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