In certain circumstances, TurboTax does not seem to be correctly carrying the reported interest to the appropriate form. If you originally purchased your home prior to December 15, 2017 and have since refinanced it and your outstanding mortgage principal exceeds $750,000, this may apply to you. If so, enter Form 1098 for the refinance in this way:
- In the Federal > Deductions & Credits section of your return, scroll down to Your Home and click Revisit/Start next to Mortgage Interest and Refinancing (Form 1098)
- Edit your existing 1098.
- Answer the questions and enter the information from your Form 1098s. For the Box 3 Mortgage Origination Date, use the original purchase date even if this is a refinance.
- Answer What kind of property is this loan secured by?
- Answer Yes or No to We didn't pay any points.
- Answer Yes to Let's see if this is the most recent form for this loan.
- Answer No to Is this the original loan used to buy your property?
- Answer Yes to Is this loan a HELOC or a refinance?
- Answer No to Did you take cash out? (assuming you did not take cash out when you refinanced in 2020)
- Once you are back in the Home loan deduction summary screen, click Done.
- Answer NO to Do either of these apply to this loan? Answer No even if it does apply, by using the mortgage origin date of the original purchase back in step 3, TurboTax will correctly apply the proper mortgage limit on your home acquisition debt.
- Enter the outstanding loan balance on January 1, 2022 in the first field. Leave the second field blank.
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