2024 Home Mortgage Interest Deduction worksheet with two mortgages, two homes

[KJ88]

Hi, is anyone having an issue with the mortgage interest deduction worksheet for 2024?  I have two large mortgages, one pre-2017, not paying any principal, and one post-2017, paying principal.  The worksheet did not recognize the average 2024 balance of the pre-2017 mortgage, so therefore not limiting the interest paid.  The worksheet did recognize the average balance of the post-2017 mortgage.  I double-checked 2023, and the mortgage interest deduction worksheet did work properly for both mortgages, and therefore severely limited the deduction for 2023.  Not so for 2024.  Hey, not complaining, but I don't want a notice from the IRS, know what I mean?

[zomboo]

In prior years, Turbo Tax would not include the first mortgage when figuring the average balance if it thinks the first mortgage was refinanced with the second mortgage. This was it's way of avoiding over limiting the deduction in refinance situations. It may still be doing it this way. Check your 1098 entries to make sure you did not accidentally indicate one of the mortgages was refinanced.