I bought my current home in 5/17. My original loan was for >$750k but <$1M. In 2019, I refinanced my original loan with a balance >$750k and no cash out. For my 2019 taxes, I had two 1098's and Turbo tax allowed me to add the two interest amounts and deduct the entire amount. Last year I refinanced in November before Thanksgiving, and my first payment with the new mortgage company was in January 2021 so I did not receive a 1098 for 2020 from my new mortgage company (only one from the previous mortgage company). TurboTax is treating my mortgage interest in 2020 like I just purchased the home (even though I checked the box that it was a refinance) and limited my interest deduction to the interest on the maximum loan balance of $750k. Since this is still my original home from 2017 (even though I have refinanced twice), how do I get TurboTax to allow the full interest deduction?
Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the the Home Mortgage Interest to be incorrectly limited.
If you're experiencing the issue above, please go here to receive email notifications when any updates related to this issue become available.
I'm having a similar problem in which my property taxes and interest deduction appear not to reflect the max amount that the IRS allows. I experienced a similar problem as sp1964 wrote. I went to the link within Turbo Tax message to apply for a form. An error message was recorded. In my case I have two properties of three that will exceeds the max rate. Can I prorate the interest rate of two properties to achieve the max interest deduction allowed?
Please use this link to sign up for updates regarding this issue. We are working on a resolution.