2019 Limit Deductible Mortgage Interest Question Not working?

7 replies
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I have 3 1098's to report in 2019.

1. A home which was sold in July, with the mortgage being paid off.

2. A home which I purchased in September. And this mortgage was sold and transferred before making the first payment. However a small amount of interest and points was paid to the lender, and reported on the 1098.

3. Then the mortgage in item 2 above was sold to another mortgage company. The 1098 from this company reported the remaining interest which I paid in 2019.

Every time I answer "no" to the limit deductible mortgage question, the worksheet calculates the amount of my refund. Then when I hit continue, it reverts the answer to "yes", and my refund is then federal taxes due.

Can someone help me?

Kat11_2

Alumni - Champ

@kadjenter A TurboTax Moderator is investigating this issue. I've seen several users experiencing a similar problem in the Desktop (CD/Download) software. Are you using TurboTax Desktop or the Online platform, please?

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

kadjenterAuthor

Level 2

I'm using TurboTax Deluxe on a Mac desktop.

Hjwilson

Level 2

We have sold a home in one state, bought a new home in a new state (original loan was sold so there are 2 1098s for the original loan), and then refinanced the new home. As a result we have several 1098s. The SW seems to be adding all of the mortgage balances from all of the 1098s and says I need to limit our deductions. How do we solve this showing when the largest mortgage was paid off and the loan was transferred by the original lender?

Kat11_2

Alumni - Champ

To All Users on this thread:

This issue has been reported for investigation by a TurboTax Moderator. A couple of users have agreed to submit diagnostic files. Hopefully a fix is in the works. Thank you again for your patience.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

Kat11_2

Alumni - Champ

I thought I'd share with you all another very similar running thread with users experiencing the same issue. As soon as progress is made on this issue, you'll be notified.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-where-do-i-enter-the-second-1098-form-my-original-mortgage-was-bought-mid-year-by-a-different/01/1129426/highlight/false#M123489

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

Eman_77

Level 2

Has this issue been fixed? I can do the work around suggested be making the new loan servicer's beginning outstanding debt balance $0.00, but I am having issues with the California return as the software thinks the one loan is two loans and is above the $750,000 federal threshold. The software on the California return is asking for the home value and is making an interest adjustment, which I don't think is correct. I would think there should be an update to the software or a work around by now. Can someone please help?