So near as I can tell they never fixed this issue which is quite disappointing. If you have mortgage balances higher than $1M with more than one mortgage (e.g. a primary and HELOC), the software is incapable of correctly figuring out the proper mortgage interest deduction and if you rely on the software you will pay a lot more tax that you are required to (like thousands of dollars worth!). You can see this error by looking at the mortgage interest worksheets for each lender in that it does not calculate the "average loan balance" which is needed to fill out the deduction proration worksheet for mortgages. As a result, it considers all the mortgage interest is nondeductible. I was able to fill it the form by hand and then override the line on Schedule A for mortgage interest deduction with the correct value and file my taxes but is it very unfortunate that this fairly simple calculation does not work and even worse that unless you understand the tax law there is no indication given that it is doing the wrong thing. Many people are likely going to have paid more taxes than they should have. Intuit needs to fix this issue and make people aware of the problem who are not following this thread.
