Unchecking the box resolves the issue, but if I go back to review, the problem recreates itself. It must be adding the loans without considering that it's double-dipping because it was a refi and not an additional amount.
It is obvious that Turbo Tax is not processing the 1098s properly (they are not asking enough questions and are treating each 1098 as if it a separate loan. This late into the season the Intuit should have already fixed these. It is obvious that Corporate Leaders of Intuit (Turbo Tax) no longet care about the quality of their product. They don't want to spend the money.
I have updated TT to the most current update. I see not place to indicate that the loan is the refinancing of another loan. When I answer no to the question no to the two questions (was loan over $1mm or $750k) then hit done, TT is changing the answer back to yes and limiting the deduction. All we did is refinance the original mortgage from 2012 during 2019. The average loan amount is above $750k in 2019, however since you look back to the date of the original loan, this limitation should not apply. What am I missing?
Try one of these workarounds:
- In Forms view, locate and click on Tax & Int Wks on the left from the forms list
- On the form, scroll to Mortgage Interest Limited Smart Worksheet
- Click on NO to the right of the question, Does your mortgage interest need to be limited
- In "Forms," find the "Tax and Interest Deduction Worksheet."
- Scroll down to the Mortgage Interest Limited Smart Worksheet."
- If field A 1 is blank, right click it, and select "Override", then write in the total of mortgage interest paid, from all 1098 forms.
- Once field A 1 has the total of mortgage interest paid, copy that amount.
- If field A 2 is blank, right click it, and select "Override", then AGAIN write in the total of mortgage interest paid, from all 1098 forms.
The limit on the amount of interest has changed under the Tax Cuts & Jobs Act. The interest deduction pre-TCJA has been available to qualified mortgage debt up to $1 million ($500,000 married filing separately).
Through 2025, the TCJA has lowered the amount of qualified mortgage debt to $750,000. For qualified mortgage debt incurred on or before December 15, 2017, the $1 million limit remains in place, thus "grandfathering" existing mortgage debt.
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After testing, it appears to be working correctly as long as the questions are answered about refinance. It's important to answer the questions appropriately for TurboTax to recognize that one loan is a refinance and the other was the original loan. If you go through the questions carefully, you should obtain the correct results. (see the image below for the specific page)
- Helpful link: How to handle multiple Forms 1098
Hey users that in this thread: Will you please report back here and let me know if @DianeW777 's solution has worked for you? And thank you, Diane, for posting here! This has been an issue for a couple of years now.
I'm working to find out if anyone recalls the workaround from 2019, because I remember that there was one. Let me stir the pot a little more. I'll post back here if I can offer any help! I am so, so sorry.
Users: I've just learned of this TurboTax FAQ where you have an opportunity to sign up for email notifications when this issue has been resolved.