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Returning Member
posted May 10, 2021 1:24:59 AM

Mortgage interests deduction not working for 2020, even with one original loan (1.5M).

I did a refinance in 2019 and entered the deduction limit manually.  The 2019 result was transferred to 2020 return, and I deleted the original loan (copied from 2019) but then I am getting only 200 reduction in tax every time I switched from "original" to "refin" for the single loan I have.  I ended up deleting all the loan and started again but TT didn't make any deduction.

This got to be a software bug as only for once, after I clicked done, a new option showed up. I can't reproduce the same option again with the exact same input.

This is very frustrating.

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1 Replies
Returning Member
May 10, 2021 2:01:21 AM

More details.

 

I have a 1.5M loan (refinanced in Dec 2019), with interests of 35K.   The very original loan was from 2016.

 

If I input everything as accurate (inc. cash out for  other purposes), and if I chose at the end "I will enter myself", I don't get the same input field I got with 2019 return on the next page.  

 

 

However if I chose "figure out for me" and then put "1M for the home" and "$1.00 for the year end balance", I got most of return I expected (off by ~1K). 

 

Here is why the software is completely buggy. If I went back and changed the loan as the original loan (or with any other options), the deduction will stay!!  

 

 

Or if I deleted this loan and then simply made up everything and created a fake loan (original v.s. refin, different originating dates etc etc), no deduction whatsoever.

 

Also as I mentioned previously there must be some kind of cache involved as one of options I saw never showed up again, even after I deleted the loan and restarted again. 

 

This is a desktop version (for business), and I also restarted the software once.