Can you explain why I keep getting this: Deductible Home Mortgage Interest Wks: Your calculations could not be completed. Reference code: 7-532-468?

[DaveF1006]

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..

[GJ101]

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.

[ReneeM7122]

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:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

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.

@GJ101

[coochdoc]

Still not fixed as of Feb 25.  Any idea when it will be fixed?

[dwil8686]

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???

[icabod4]

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.  

[ReneeM7122]

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:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

@litham

[mjmcleod]

That worked, thank you!

[dcontarato]

@GJ101 

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.

[Cynthiad66]

@dcontarato

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

[joemarjr]

I am getting this error as well. It is March 5th, 2021. I don't know what it means or how to get past it.

[Cass0317]

@joemarjr The error deductible home mortgage interest Wks: your calculations could not be completed is due to an issue handling multiple 1098 forms.  

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:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

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.

"Employee Tax Expert ReneeM7122"
 

[pseger61]

March 29 and I am getting this.  Turbo Tax people, can't you figure this programming issue out?  I have gone back and redone my mortgage interest twice!  Why am I paying for a service that is malfunctioning?

[JohnB5677]

This may be a work around if you have multiple 1098s.  I suggest you enter each one separately.

If a Mortgage is paid off, or re-financed you should:

• Enter $1 in Box 2 Outstanding Mortgage principal for the Refinanced / Paid off mortgage
• Every 1098 should be posted.
• The final 1098 for that property will have the full loan amount as reflected in Box 2.
• If you have multiple properties, you should follow this procedure for each property.

This will properly record every 1098, and avoid any issue with mortgage limitations.

When you have more than one Form 1098 with the refinance info and both show the same balance of the mortgage, TurboTax adds the amounts together. And that may lead to a limitation of the deduction, because the balance is then overstated. To avoid this, make sure that you're not reporting the same mortgage balance twice.

If your combined home debt is under $750,000 ($750,000 for married filing jointly and $375,000 for married filing separately), there's nothing new for you to do in 2020. Enter each 1098 as you normally would.

[mewall]

This worked for me as well.  My loan was under $375K, but I was having the same issue.