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In addition, the reason you are seeing all of your 2023 interest as deductible may be because you have paid down your mortgage enough to cover the cash-out. For income tax purposes, all principal payments go toward the cash-out portion of the mortgage first until it becomes 0.
If your refinance in 2020 was to refinance the original mortgage to buy the house, enter the original principal borrowed to buy the house, not the amount refinanced minus the cash-out for the car. Enter your 1098 as you received it, including the origination date for the refinancing loan in box 2. Then when asked, select 'This is a refinance of a previous loan'. Turbo Tax will ask you to enter the purchase date of the home bought with this lender. Enter the origination date of the original mortgage.
In addition, the reason you are seeing all of your 2023 interest as deductible may be because you have paid down your mortgage enough to cover the cash-out. For income tax purposes, all principal payments go toward the cash-out portion of the mortgage first until it becomes 0.
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