Let's not assume that the forms are reporting correct on the return. We will ensure that you are receiving your allowable Mortgage interest deeduction. With the expected amount being off by more than $20,000 there must be a reporting issue.
First we need the specifics of your mortgage interest situation. Sounds like you had a Mortgage and a HELOC.
But be aware that home equity (HELOC) interest is only deductible if the money was used to buy or improve the property that is secured by the loan.
When you have more than one Form 1098 with the refinance info and both show the same balance of the mortgage, TurboTax adds the amounts together. And that may lead to a limitation of the deduction, because the balance is then overstated. To avoid this, make sure that you're not reporting the same mortgage balance twice.
Try following these steps to enter the Mortgage Interest Deduction:
If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms.
Follow these steps to enter your mortgage info:
- Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender).
- Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
- Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage insurance, these boxes will be blank on your forms and you won’t enter anything.)
- Add the property tax paid from each form and enter it in the Property (real estate) taxes box.
Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.
@jcore58
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