Mortgage interest error

Forum|Forum|5 years ago
January 30, 2021
32 replies
163 views

Will not allow me to check box "No, none of these situations apply to me". I've entered the interest for my three loans for my house (my loan was sold to another lender 2 times). It looks like TiurboTax is adding the loan balances together; so, now I exceed the max $1-Million limit.

Mortgage Interest

D Ernst 65

Level 2

Ive run into the exact same problem, refied twice and have interest from three mortgage companies. as you described Turbo tax is treating this like three diff propertys exceeding the $750K or $1M limits and as such my $27,000 in interest is being reduced to $8500 on schedule A. Have you figured out what needs to be done to fix this? thanks, Doug

smith29422Author

Level 2

I have no idea how to fix this. Do you know how to report this problem to Intuit?

Thanks,

-Gary

AlanT222

Level 15

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause the Home Mortgage Interest to be incorrectly limited.

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MikeD15

Level 5

This makes no sense whatsoever to me, but rather than a bug fix I found this when I clicked on "Multiple 1098 related to a Refinance done in 2020."

MikeD15

Level 5

And this for mortgages exceeding $750,000 ($375,000 filing separately).

MikeD15

Level 5

Hey Intuit, are you reading this?

This should be an easy fix.

(1) The step-by-step guide never asks for the payoff date (if any) on a mortgage, even though that's part of the underlying worksheet.

(2) Then, if the origination date is earlier than 2020 it just defaults to 12 months, even if I enter the "Date loan was paid off" in the "Smart Worksheet". Ain't that a misnomer!

(3) For a mortgage that did originate in 2020, it calculates the proper term (e.g. 7 months).

(4) Because the program ignores pay-off dates, however, it just adds up the principal from all of them. That can erroneously cause the mortgages to exceed the $750,000 limit on interest deductions. This became evident when I looked at my CA Deductible Home Mortgage Interest Worksheet. The "average balance of all home mortgage debt" is the sum total of all the mortgages I entered, even though they didn't exist concurrently!

(5) I found that right-clicking on that average balance box allows me to select "override" to enter the correct mortgage balance, but haven't seen how to fix that on federal yet.

Kaushal

Level 2

Ive run into the exact same problem, my mortagage company transferred the load to someone else during the beginning of 2020 and then i refinanced later in the year. So I have 3 1098's for this year. What is the recommend solution from turbotax for this? Can anyone from turbotax or intuit respond? Or anyone from the community can respond and suggest the right solution to this. Appreciate your help.