I'm receiving an error: "Deductible Home Mortgage Interest Wks: Your calculations could not be completed. Reference code: 9-945-263"

[Brendan5]

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.

[ReneeM7122]

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:

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.

[RQUIAMZON]

this year's turbo tax software has had many errors.. What's wrong? Very disappointed. 

[SC1962]

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. 

[SC1962]

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. 

[AliciaP1]

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:

1. Gather all of your 1098 forms related to your loan that was sold (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 insurance, 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 lender.

@SC1962

[Lauretta2]

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.                          

[Mike9241]

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