There is still updating being done in this module. Please try back closer to the acceptance date of February 12th.
Some TurboTax customers are experiencing an issue with their home mortgage average balance. This can cause the home mortgage interest to be incorrectly limited. This may be affecting your tax return.
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See this TurboTax Help.
Hello, how do I register for an e-mail notification to be notified when this issue is resolved? Thank you.
Some TurboTax customers are experiencing the following error message when running the Federal Error Check
Check This Entry: Tax and Interest Deduction Worksheet: Limited Interest and Points must be entered
If you're experiencing the error above, please go here to receive email notifications when any updates related to this issue become available.
Feb. 15, 2021
I am still getting this same error. I have redone it several times and still the same error. Your tax experts had me redo the whole return twice and still getting the same error. Please, will this be fixed or is there a manual way to fix this. Getting frustrated, have a time-limited loan that needs to be repaid for solar. Should I try another company if this is not close to being fixed??
The issue has been submitted and is currently under investigation. Unfortunately, the error seems to be persistent. Please click on the link below and sign up for an email notification when it's fixed. However in the meantime, since you need this resolved expediently, TurboTax does have an option where we can prepare the return for you, if you choose, as well.
Home Mortgage interest being limited
When will this error be fixed?!? I’m on the phone with an agent now that can’t help me, no tax expert available for 10 days & I have deleted and reentered all of my information twice in the last two days (advice from your agents) and they still can’t help me!!!!
The problem will not clear with the recommendation provided. Do you have an anticipated time to get this corrected?
Yes we are getting it too...person on the phone had no clue. to get someone to do the taxes for you is not free so how is that more helpful???
Renee,
The link you have does not give you somewhere to sign up for email notification. It says the problem is resolved which it is not. Is it added cost to have someone do it? Does look like even more money and how do we know that it will be done correctly when no one seems to know what is going on...Used turbo tax for 10 years and this may be the last.
Hello, I was just reading through the thread and am confused if Turbo tax thinks this issue is resolved. It's 2/21/21 and I'm still getting the same reference code 7-532-468 when I try and file. When I click on the link from Turbo Tax it says the issue was resolved a week ago. Do I need to clear and reenter now that it's "resolved". Please let me know I spoke with a tax expert a few weeks ago who could not offer any useful advise.
I ended up with someone super helpful at Turbo Tax and we fixed it on my end. If you have multiple 1098 forms (refinanced), you need to make sure you combine them and only enter one for each property if the loan is over $375,000. There are instructions that don’t stick out very clearly on TT, but there is a link at the top when it’s asking questions about your 1098 and if you click the link explains it super clearly. For example....I have a first & second home. We had a HELOC on each, then refinanced each in 2020 and each bank sold the mortgages. I originally put in all 7 of my 1098s separately and got the errors. When I changed it and only put in each HELOC & combined the others, I then only had 2 HELOC entities and 1 entry for each home. It completely fixed the error!
This is not resolved and it's the only remaining error I have before I can file. Is there a solution? How do I address it?
According to this link from Turbo Tax, this is one solution that addresses the problem regarding multiple 1098's. If you have additional problems, you might wish to contact Turbo Tax Tech Support at 1-800-446-8848 for further assistance as they can look at your screen to pinpoint any issues you are experiencing..
RESOLVED: Spoke with Turbotax CPA today, 2/22. Due to Turbo coding issues that create issues with multiple 1098s, the solution was to combine all 1098s into one with the a lender name of "MULTIPLE," and delete the other 1098s in the software. Combine all of the interest paid and enter that into for the "MULTIPLE" 1098. For the origination date and loan amounts in "MULTIPLE", enter whatever the latest 1098 was in 2020. This worked on my end with the Turbotax CPA, who said this was how they used to do it before the software listed each individual 1098. If you're ever audited, you can show the actual 1098s and how, altogether, got you to the "MULTIPLE" total.
Correct. Here are the full instructions:
How do I handle multiple 1098 mortgage forms?
If you have multiple 1098 mortgage forms, you’ll enter them one at a time. After going through the steps with the first one, you can add a lender when you get to the Mortgage deduction summary screen. (In the case of a refinance, it's best to enter the 1098 from your original loan before the 1098 from your refinance.)
But, if they're both from the same lender, and one of them has the “Corrected” checkbox marked at the top, enter the corrected 1098 and discard or shred the other one.
What do I do if I have multiple 1098s from refinancing my home debt?
If your total home debt is under $375,000 ($250,000 for married filing separate) there is nothing new for you to do in 2020. Enter each 1098 as you normally would.
Home Debt Over $375,000
Under tax law, you are limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you.
If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms.
Follow these steps to enter your mortgage information:
Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.
What if I have more than two 1098s?
You should combine all of the 1098s directly related to the refinance and enter it as one 1098. An example of this is if you refinanced two loans into one loan. Any 1098s not directly related to the refinance should get entered separately.
What if I paid points?
Points on Loans Paid Off in 2020: Enter the points on your 1098 you have started and mark you paid off the loan when promoted.
Points on Loans on New Loans: You will want to enter a separate 1098 to cover these points paid. When prompted, enter 0.00 for Boxes 1, 2, 5, and the Property (real estate) taxes box, and checkbox 7, as you’ve already entered the details on your first 1098. For Box 3, add the date in 2020 when the loan originated.
Still not fixed as of Feb 25. Any idea when it will be fixed?
Still not fixed as of 2/25.
I'm still getting error message - deductable home mortgage interest wks: your calculations could not be completed. reference code: 9-945-263
I've tried combining all 1098s to no avail. Can someone please help???
Yes we did what others suggested and combined them . We had 7 from 3 different property issues so we combined them into the 3 and it worked. Someone else said put as 1 total and write in name as MULTIPLE. We did it and went through accepted by feds and state.
If you've got a refinance with outstanding mortgage on both 1098 forms (line 2), the software adds them together. That prompts a limitation on the interest because the amount exceeds the threshold.
To correct the error, you have to prevent the two 1098s from being added together. Here's what to do:
Home Debt Over $375,000
Under tax law, you are limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you.
If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms.
Follow these steps to enter your mortgage information:
Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.
I spent the best part of today trying to figure this out. Got it about the combined 1098 as repeatedly recommended by @ReneeM7122 and thanks for the suggestion of calling the combined 1098 "MULTIPLE"...
BUT: I'm now confused by this statement: "For the origination date and loan amounts in "MULTIPLE", enter whatever the latest 1098 was in 2020" because TT instruction and @ReneeM7122 's posts say clearly to use the original loan for boxes 2 and 3 (outstanding principal and origination date). Isn't the latter correct since what matter is the loan amount (and date) as of 1/1/2020?
Thanks everyone for chiming in.
Correct. however, if there are new loans added during 2020 that must be added there also.
Does this help with those questions on the limited interest? I have not tried it out and don't spend time on it if you don't have it to spare. I just ran across it somewhere.
Multiple 1098s related to a Refinance done in 2020
1. Input just 1 1098 to cover the refinance.
2. Gather all of your 1098s related to the refinance.
3. Separately add up the amounts in Boxes 1, 5 and any property taxes paid
4. Box 1, Box 3 and Property Taxes- Input the total amounts for each on the refinanced debt
5. Box 2- Input the amount of debt on 01/01/2020.
6. Box 3- Mortgage origination date- Input the oldest date on your 1098s related to the refinance