I took a loan for 450k in 2018. This was transferred by the original lender in 2019 to another company (company 1 for which I have 1098). Then I refinanced with company 2 who held my loan for 3 months and then transferred it to a 3rd company who had the loan for 3 more months in 2019.
when I enter the 1098 information for loan deduction -the average loan balance is going over 450k and reducing my deductions instead of sticking with my original 450k (seems like turbo tax is calculating incorrectly) - need help.
You must enter the 1098 forms in chronological order and complete each screen completely ... by doing so the program will recognize the changes in the mortgage holders. I suggest you delete all the forms you entered and try again.
I tried this out and it doesn't work. I deleted all 3 lenders and then went in and added it again. the question that comes after adding the lenders where it looks for more than 750k balance is "No" for me but it switches automatically to yes and then switches my deduction from itemized to standard which is wrong
For desktop versions:
Or, try this in desktop:
In "Forms," find the "Tax and Interest Deduction Worksheet."
Scroll down to the Mortgage Interest Limited Smart Worksheet."
If field A 1 is blank, right click it, and select "Override", then write in the total of mortgage interest paid, from all 1098 forms.
Once field A 1 has the total of mortgage interest paid, copy that amount.
If field A 2 is blank, right click it, and select "Override", then AGAIN write in the total of mortgage interest paid, from all 1098 forms.
For online versions, after entering the 1098 interest information, continue through the screens and TurboTax will ask you if the interest needs to be limited.