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pickle107-37620
New Member

Is there another patch on mortgage interest to correct the algorithm. The system is still adding my balance together even when they prior 1098 is marked loan paid off

I have 3 1098's.  Original loan, servicing change and a refinance. The worksheets show that the system is adding the 3 balances together making the total avg balance in excess of $750k and therefore limiting my interest deduction.  The update did not correct this issue.
2 Replies
Cynthiad66
Expert Alumni

Is there another patch on mortgage interest to correct the algorithm. The system is still adding my balance together even when they prior 1098 is marked loan paid off

Try this workaround.  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. 

Critter-3
Level 15

Is there another patch on mortgage interest to correct the algorithm. The system is still adding my balance together even when they prior 1098 is marked loan paid off

So close ... ONLY the first 1098 should have the opening balance  as of 1/1/2020 and all the other forms will have a zero since the balance of those mortgages was Zero as of 1/1 since they were not in existence at the beginning of the year.  

 

1098-  1.png1098-  2.png

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