Yes, due to the complexity of some mortgage interest limit calculations, TurboTax directs you to compute the averages yourself in some cases. These are listed in the On Demand help during the follow-up questions on mortgage interest:
What mortgage situations are not fully supported in TurboTax?
TurboTax reflects the correct calculation for the mortgage interest in almost all circumstances. There are some uncommon situations where TurboTax does not gather enough information to fully calculate the deductible interest without some additional steps on your part. Examples of these are as follows:
- Transfer from a conforming loan amount where points are being amortized to a loan above $750,000 either through a home purchase or refinance.
- Refinances or sale a home while owning a second home where the total debt exceeds the allowed loan limits
- More than 5 1098s and exceeds allowed loan limits
- Debt above limits and also uses a part of the home for a rental or home office
- Someone who wants to use another method of averaging loan balances other than the beginning and ending balance method.
These calculations are found in IRS Pub 936 Part II, Limits on Home Mortgage Interest Deduction in the instructions for Table 1. If you find you are unable to complete these calculations yourself, we recommend you contact a local tax professional who can assist with your specific tax situation.
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