Deductions & credits
You have two homes and the two balances are being added together and limiting the mortgage interest. The program and the worksheets are trying to get an accurate final number on your tax return to submit to the IRS.
Since you know the correct answer, enter a mortgage balance so that together they are less than $750,000 and enter only the portion of the interest you are entitled to claim.
Even easier method -
You can actually just make one mortgage interest entry for the correct amount and select a value below $750,000. Your sch A only shows the total being claimed. Nothing else goes to the IRS. The IRS already received your 1098 forms from the mortgage companies.
