TurboTax states in the Home Mortgage Section that it does not provide the service of computing an average mortgage balance, however before the interview in that section ends, there is an option to adjust the amount of interest you can claim.
The IRS gets a copy of the interest statement Form 1098 from your Lender.
TurboTax uses a "worksheet" to calculate the interest.
If you decide to use the average balance and claim an amount of interest slightly different than what TurboTax computed, there is nothing that TurboTax sends to the IRS other than the interest you claim on Schedule A.
This "Average daily Balance" would need to be calculated by you separately.
Although you may still be disappointed that the program does not make the calculation for you, you may feel relieved that you making an adjustment in TurboTax does not cause any more scrutiny from the IRS than if you did your return by hand as a paper return.
The same information (return done by hand or done via software program) is sent to the IRS.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
