When entering your mortgage information without a form 1098. Box 1 will be the total interest paid in 2022. Box 2 will be the outstanding balance on 1 Jan 2022 ($1M in your scenario). Box 3 will be the date you took out the loan originally. If the loan is secured by your home mark box 7. If not, leave it blank and answer yes or no to the follow on question asking if the loan is on a property you own. Answer the "Refi" questions as applicable. Answer "Yes" to the question "Is the the latest 1098 on your loan?"
Assuming this is your only mortgage, continue through the interview and click "Done" you should then arrive at a page that says your interest has been limited and gives you the opportunity to enter an adjusted amount.
Using the general numbers you provided you can find the correct limited interest to go in the "Adjustment" box.
First balance plus last balance / 2 ($1M + 890K)/2 = 945K You state based on the loan origination date that $750K is your loan limit. So 750/945 = .7937 Multiply .7937 x total interest paid that you entered in Box 1 (32,400 for example) = 26,040 deductible interest.
Once you have completed the mortgage interest topic in the federal interview you can return to the CA state interview. The page you showed was the correct page to find the Home Mortgage Interest adjustment under the "Home" section. You will be able to view/edit that adjustment. TurboTax will automatically make the CA adjustment but you can verify. All of the interest in your scenario should be deductible on the CA return since the average balance is below $1M.
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