I also have an issue with average mortgage balance calculations (TurboTax Home and Business 2021, desktop). I have a case where, at the very end of the year, I both refinanced my primary home loan (with a cash-out) and took a new mortgage for a second home. Deductible Home Mortgage Interest Worksheet calculates the Average Balance for each loan as the difference between beginning balance (either beginning of the year or origination date) and the ending balance. This is not correct as the average should be average over the year, not over the time of the loan. For example, the loan that originated in December should have average mortgage balance only 1/12th of the loan amount.
The excessive average loan amounts trigger the $750,000 threshold and mess up the return, and I can't find a way to manually enter the correct mortgage averages. Any help?
