Mortgage Interest Deductible Limit

[TaxRanger101]

I have a 1098 for my original mortgage with with an original balance less than $750K

I have a second 1098 from same lender for refinanced loan, again balance less than $750K. 

TurboTax asks if average loan balance exceeds $1M prior to 15 Dec 2017, or exceeds $750K prior to 15 Dec 2017. I'm married filing jointly. 

In reality, the answer is NO, as I've never taken a loan that big at all. 

However, Turbotax has preselected "YES" and grayed out the selections so I can't change it. 

Why? 

[Kat]

@TaxRanger101 In the 2019 TurboTax program, there was an issue just like what you're describing.  When a user entered a refinanced mortgage, somehow the mortgages were totaling the mortgage balances rather than treating it as a refinance.

Let me report this to TurboTax Moderators for investigation.  Do you mind grabbing a screenshot (with no personal information, of course), that I can share with Moderators?

Thank you so much!

[SR1515]

We are having the exact same issue

[johnoo64]

I have the same issue.  How to fix?

[Kat]

I have posted this thread where Moderators can see it.  I'll follow up here as soon as I'm advised of how the issue was resolved in 2019.  So sorry for the difficulty.

[TaxRanger101]

Hmm, I can't quite figure out how to get back to the screen with the issue now that I passed it in order to grab a screenshot. 

Will keep trying. 

Thanks for your help! 

[rainhanna]

I am experiencing this same issue, I had 2 refinances in 2020 which results in 3 different interest amounts which requires me to enter 3 different loan balances, making my loan balance $1.8M when it really is $600K. I too am getting the preselected "Yes" on the next screen and am unable to select "No."

[wdr03]

I am having same issue, it keeps adding both my original loan and my refinanced loan together. It never gives me the option to say I paid off the first loan (with the refinance of course). Please help!

[AnnetteB6]

If you would be willing to share a diagnostic copy of your tax file, it could be helpful to examine the situation in more detail.  

To do so, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

@TaxRanger101

@rainhanna

@SR1515

[rainhanna]

I have a downloaded version of Turbo Tax Deluxe 2020 and do not see a "Online" option.

[Kat]

@rainhanna I also use the Desktop TurboTax product.  I'm attaching a screenshot below that shows where you'll see the "Online" option in the task bar at the top left.

[rainhanna]

Here's what I see:

[GreenSierra]

I am having the same issue as others.  Refinanced my mortgage.  Both the old balance and new balance are under 600K, but turbotax automatically prefilled the "Yes, one or both of these situations apply to me" box, indicated my average loan balance exceeds $1 million.   Apparently the software is adding both the original and the refinanced amounts together, even though the refinanced amount paid off the original amount.    I can't find the "online" options others have mentioned to report this issue (running the CD version on a Mac).

[Kat]

@rainhanna So strange!  I thought all of the Desktop editions would look the same!  I'll see what I can find out.

Thanks so much for that screenshot!  (And sorry mine was cut off).  😉

[Kat]

Okay @rainhanna and @GreenSierra:  Since you're using Mac software, my co-Champion, @macuser_22 has given these instructions for sending a diagnostic file to TurboTax.

On the top menu bar -> Help ->Send File to TurboTax Agent.

Thank you, @macuser_22 !