Issue with "Limited interest and points must be entered"

[coloradovrs]

I have an error during Smart Check that says "Tax and Interest Deduction Worksheet: Limited interest and points must be entered" and then the second line says "Limit Int/points on 1098 and a blank empty box that apparently I have to fill in with some number?  What do I enter here in this box?  

Background:  I have three 1098s...  First 1098 is where I purchased my house with $4,010 in points but only $191in interest, the second 1098 is from when the first mortgage company sold my loan before the first payment was even due, the third 1098 is from a refi 9 months after purchase where I reduced the interest rate 1.25%.  The above error may be related to those 1098s.

Thank you!

[coloradovrs]

Hey TurboTax, can I get some help on this question from yesterday?!

[Anonymous]

I have the same issue.  Multiple lenders due to loans being assumed by others and refinancing. Interested in the answer.

[Itguy4123]

I've encountered this issue as well. Seems to be due to multiple 1098s for the same mortgage and the outstanding amounts being added together and exceeding the threshold.

[Itguy4123]

I was able to solve this by switching to forms view and unchecking the box on the form incorrectly indicating that needed to limit interest/points as I didn't meet the stated conditions.

[fuzzystingray]

I am encountering this also - it appears that TurboTax is not letting me itemize my deductions due to this "limit int/points" issue. I cannot find a box to uncheck that will fix this in form view. Can someone provide more specific instructions to fix this, please?

[fuzzystingray]

Solution: In Forms View, go to "Tax & Int Wks" and scroll down to "Mortgage Interest Limited Smart Worksheet". Assuming it's correct for your situation, change "Does your mortgage interest need to be limited" from Yes to No. 

[farnow]

Thank you. This was driving me crazy.

[jncheung]

I had the same problem. Your solution switching to form view worked! Thank you! 

I hope Turbo Tax is reading this. They really need to fix this with so many messages reporting this problem.

[chrisgmorton]

Same issue. I see how to fix from the suggestions in this thread. Note, If I delete all my mortgage interest entries and run the check again, I still get the same error. Bug in Turbotax.

[VictoriaD75]

There is a workaround for this. 

For desktop versions:

• In Forms view, locate and click on Tax & Int Wks on the left from the forms list
• On the form, scroll to Mortgage Interest Limited Smart Worksheet
• Click on NO to the right of the question, Does your mortgage interest need to be limited

For online versions:

• Under Deductions & Credits, expand the menu for Your Home
• Click Start/Revisit next to Mortgage Interest and Refinancing (Form 1098)
• Click through until you get to a screen that says Do any of these situations apply to you? Mark Yes.
• On the next screen, take out the zero.
• Click back and choose No.

[bradleysig]

The Online workaround here is incomplete. When I revisit Mortgage Interest and Refinancing (Form 1098) I see a list of Lenders who sent 1098 forms. When I click through any of them I never reach a screes that asks "Do any of these situations apply to you?" And therefore can't reach a screen to "Take out the zero." If I skip past the list of lenders only choices at add another 1098 or "Done." Neither of which gets me to the needed screen.

• Under Deductions & Credits, expand the menu for Your Home
• Click Start/Revisit next to Mortgage Interest and Refinancing (Form 1098)
• Click through until you get to a screen that says Do any of these situations apply to you? Mark Yes. <-----------This Doesn't Exist
• On the next screen, take out the zero.
• Click back and choose No.

[KrisD15]

Are you getting an error that the interest you entered may be limited?

Do you get to the "Here's your 1098 info" screen? 

Does any 1098 show as "Needs review"

When you click "Done" on this screen, you should get to the “Do any of these situations apply to you?” screen. 

If you don't see this screen, your interest is not limited. 

What type of error are you seeing? 

ONLINE USERS:

Please go back to the Home Mortgage Interest section:

Click Federal on the left side-bar

Click Deductions & Credits along the top

Scroll down to “Mortgage Interest and Refinancing (Form 1098)” Click Edit/Add

Scroll down the “Here’s your 1098 info” screen and click Done.

Next screen asks “Do any of these situations apply to you?” Select “Yes, one or all of these situations apply to me.” and Continue.

On the following screen, you will see the “Original amount”.

Enter the amount you can claim as a Home Mortgage Interest deduction in the “Adjusted amount” box. The Adjusted amount cannot be larger than the original amount or you will receive an error when trying to file. Instructions on who needs to adjust interest and how to calculate are available by clicking the blue “Help me figure this out” link.

[akira851338998]

This workaround doesn't work for me.

I did see that screen when I first entered the info of my 1098. But when I revisited it to try your workaround, that screen never showed up again no matter what I tried. I tried to edit the existing 1098, delete the existing 1098 and re-enter it, add another 1098 besides the existing 1098, delete the existing 1098 and log out then log in and re-enter it, delete the existing one and log out and change to another browser and log in and re-enter. 

I also tried to google other workaround, there seems not any. This process is too frustrating. Given the slow speed you reply to this ticket, looks like the only way I can do now is to discard the work which I spent hours on on turbo tax, and find an accountant to do my tax.

[rh12]

I have the exact same issue

Can anyone help with a fix that actually works??