There is a problem in the Home Mortgage Interest area of TurboTax. TurboTax is working to resolve the issue quickly. You can check back often to see when it is fixed.
OR
We can try to assist you , in the meantime.
The specifics about your loan situation would assist in helping to find a work around for you. However, if you have more than one Form 1098INT please try this workaround below:
If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file.
If this did not help, contact us again and give us information about your Loans for your home mortgage. Or keep checking back to see if the issue is fixed. TurboTax is working to get this fixed along with several other required updates to the software.
Your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.
For tax years before 2018, you can also generally deduct interest on home equity debt of up to $100,000 ($50,000 if you're married and file separately) regardless of how you use the loan proceeds.
For details, see IRS Publication 936: Home Mortgage Interest Deduction.
I'm have the same problem today. So much for getting my taxes done today... ugh.
@lasnyder62 wrote:
I'm have the same problem today. So much for getting my taxes done today... ugh.
See this TurboTax support FAQ for the error - https://ttlc.intuit.com/community/tax-credits-and-deductions/help/deductible-home-mortgage-interest-worksheet-9-945-263-error/01/1995112
Hello, I was trying to complete and submit my taxes today in order to save $30 as advertised, however this error is blocking me from finishing my work.
I read through the steps to attempt to fix the error, however I only have one mortgage, no refinancing here, so I'm not sure it applies to my situation.
What else can I do in order to submit my tax payment today and avoid the extra $30?
@nateplusplus wrote:
Hello, I was trying to complete and submit my taxes today in order to save $30 as advertised, however this error is blocking me from finishing my work.
I read through the steps to attempt to fix the error, however I only have one mortgage, no refinancing here, so I'm not sure it applies to my situation.
What else can I do in order to submit my tax payment today and avoid the extra $30?
You can pay the TurboTax account fees for the edition you are using without having to file the 2020 tax return to lock in the current price.
To pay the TurboTax online account fees by credit card, without completing the 2020 return at this time, click on Tax Tools on the left side of the online program screen. Then click on Print Center. Then click on Print, save or preview this year's return. On the next page, to pay by credit card, click Pay Now. The next screen will show a review of your Fees, click on Continue. Complete the next screen to pay by credit card and click Continue.
The error is still happening 3/1/2021. I did not see this messaging platform yesterday & am wondering if we are facing a Turbo Tax error how will we still get the $30 discount when Turbo Tax has resolved their error.
This has been an issue for over 2 weeks now.
DO BETTER TURBOTAX.
In case it helps anyone – I was able to move past the error by simply answering all the questions in the Home Mortgage Interest section again. I simply stepped through that section keeping my responses the same, and when I returned to the summary, the error was no longer there.
Wow! That worked. Thanks for the tip. Would have been nice if TurboTax replied & supported.
After the work around, were you guys able to pay and submit your taxes successfully?
I was able to pay successfully (of course), but then upon submitting my taxes I received the same error.
TIA.
I was able to submit/complete everything. The only thing I did differently was that I re-entered each field in the mortagage section.
My problem is that I refinanced and then my new mortgage changed servicers several times resulting in a total of 4 1098s. The mortgage is over the $750k limit, so Turbotax needed to figure out the average mortgage balance to figure out what proportion of the interest I paid could be deducted. Instead, it just added up the mortgage balance from each 1098 and used that as the average balance (4x the starting balance!). As such, it said I could only deduct a small fraction of the interest I paid.
After upgrading the Turbotax account with full service, the only way I could fix it was to go to H&R block. It lets you calculate the correct balance using Pub 936.
If you have multiple refinances AND the loan was sold to different lenders, you have to treat the 1098s in a certain way so that TurboTax handles them correctly.
Currently, TurboTax has instructed us to combine multiple 1098s together. But if your loan is sold, then you don't have two loans - you have one. The loan was sold outside of your control and the only thing that changes is the bank to whom you make payments. So you only use the ORIGINAL 1098 for that entry.
Once you're done with the sold loan portion, go ahead and follow these official steps regarding the refinance:
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.
@Brendan5
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.
this year's turbo tax software has had many errors.. What's wrong? Very disappointed.
My issue is that I sold my home and bought another. Then the lender on the initial new property loan sold the loan. So I have three 1099's. If I zero out the balance on the first of the two new property loans, Turbo Tax errors saying that has to be a value in the box. I don't think I can add all three 1099's (one from old property, two from new property) into one. How do you suggest I fix this error allowing me to file.
My issue is that I sold my home and bought another. Then the lender on the initial new property loan sold the loan. So I have three 1099's. If I zero out the balance on the first of the two new property loans, Turbo Tax errors saying that has to be a value in the box. I don't think I can add all three 1099's (one from old property, two from new property) into one. How do you suggest I fix this error allowing me to file.
Under tax law, you're 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. Since your current home loan was sold, you have 2 mortgage balances on the 1098s between the 2 lenders.
To correct this so you aren't showing loan amounts over the limit you can follow these steps:
Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original lender.
@SC1962
I'm using the online Deluxe edition. System calculations for deductions did not include the Mortgage of $11,235 and applied a $489 sales tax credit to the standard deduction coming to a total of $23,293. So the standard deduction was incorrectly used in the amount of $28,700. The deductions should total $35,017 and be itemized. I could not go in and change the summary of the deductions to correct it. This makes a substantial difference in my refund amount as that is a large amount of deduction missed. I also tried to go in and delete the file as done and do it all over again in hopes of it correcting itself. The instructions say it can be cleared by using the drop down menu and under tax tools you can clear it. That does not come up as an option to use in the one I have.
we can't see what you did or did wrong for the mortgage interest not to show up provided your itemized deductions after limitations are $23K. that is because medical is limited to the amount in excess of 7.5 % of your adjusted gross income, taxes are limited to $10K, and there are limitations on mortgage interest and even charitable contributions. contact support for help. they can look at what you did, we can't