Mortgage was sold to another mortgage in 2020. line 2 shows outstanding balance on both totals over $750,000 wants to limit the amount of deduct.Correct Turbotax program?

[jspadilladuke]

Because my loan was sold i still only have the same house so turbo tax should not be adding these two outstanding balances together.  When they do it looks like i have a loan over $750,000 which then puts me in another bracket. They now want me to do the limit the amount of interest deduction which is not correct.  Can turbo tax be corrected before taxes are due?

[DianeW777]

The best advice is for you to change the mortgage balance for the loan that was paid off, then put the correct outstanding mortgage principal in the refinanced or current mortgage.  If you are required to enter an amount you can use $1 in the loan that was paid off (it appears this may need to be entered).

[lk55]

Thank you. I had the same issue from a refinance.  I did have to enter a value.

[JoannaB2]

Yes, if the bank that serviced your mortgage sold the loan to another lending company, your loan was only transferred to the new company -  the same loan amount (maybe different account number).  The mortgage interest on a $750,00 loan ($375,000 for single filers) used to buy or build a home is fully deductible.

See, why is my home mortgage, for any data entry issues.