Trying to enter all my Mortgage Interest for this year (in Step by Step mode) and I've run into an issue. I had a mortgage from 2018 that I refinanced in 2019. Both were for amounts under the 750K cap (right around 700k) with no money taken out on the refinance.
When I finish entering both 1098s, I get promoted with by TT with "Do these Situations apply to you" to determine if I need to limit the interest deduction. I select "NO, none of these situations apply to me" because, as I understand, I shouldn't be limited. However, the program seems to be updating the Tax and INT worksheet that my interest needs to be limited.
Anyone else seeing something similar or am I doing something incorrectly?
I cannot replicate a limitation in my TurboTax, based on the information you provided. But, I don't have all the numbers from your 1098 forms. Here are some suggestions to help resolve or at least diagnose the issue.
Firstly, go back through the questions and check the following:
- The boxes in TurboTax match the boxes on your actual 1098 forms.
- For the refinance loan, did you designate that it was a refinanced loan?
- Did you take out any cash as a part of the refinance? (If so, some of your interest will not be allowed as a deduction)
- If you look at your Schedule A is the mortgage interest deduction actually being limited instead of the full amount?
Once you've confirmed that all the questions are answered correctly, if you still have a limitation issue, then:
- Because you mentioned the Tax & Int Wks, I am assuming you are using the TurboTax Download/CD version. If so, make sure you have installed the most current update.
- Take a look in "Forms Mode" at the Tax & Int Wks. Near the "bottom" there is a Mortgage Interest Limited Smart Worksheet in the Interest Deductions section. If the "Does your mortgage interest need to be limited" question was for some reason checked "Yes" in error, you may need to manually check "No" instead. That could clear up any limitation message you are getting.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I'm having the same problem. I have three 1098'. One is the original mortgage, the second from a refinance, the third from a transfer of the mortgage. The refinance and transfer were both in July. The mortgage is $500,000. No cash was taken out. It thinks I have a $1,000,000 mortgage.
I am having the identical situation. The identical steps happened in my turbotax home and business cd (with updates) edition.
I bought a home with a 640k mortgage in 2018. I refinanced in 2019. So I entered the two 1098's I received and Turbotax overrides me (when I click that "none of these apply to me" at the screen about whether my mortgages total more than 750k) and seems to add together the amounts, even though it obviously is the same mortgage. I've tried a dozen times to get it do the right thing, but it won't let me.
I should add that Turbotax correctly reports (from my 1098's) that I have paid 15k in property taxes and 26k in mortgage interest, but then insists that I take the Standard 24k deduction. (Even if only 10k of the property taxes are now deductible, that still means I have 36k in deductions from mortgage interest and taxes alone--obviously a lot more than 24k.) Clearly it is adding together my 640k mortgages (which are a single mortgage that got refinanced) and disallowing the interest.
My situation is the exactly the same. I did switch to the forms entry and corrected the answer to the limitation question. It fixed the problem but it shouldn’t be necessary to correct an entry due to a TT software problem.
Can you tell me where exactly to do that in the Forms entry? I switched to forms entry, found the form, tried changing some things, but nothing worked. I'd be happy to be told what exactly to change to get this right.
I doubt we are the only ones who refinanced a house with a mortgage somewhere between 500k and 750k in 2019!
I went in the forms and opened the Tax & Int Wks. Near the "bottom" there is a Mortgage Interest Limited Smart Worksheet in the Interest Deductions section. I changed the “Does your mortgage interest need to be limited?" to "No".
I also went each 1098 form and verified everything was correct. I need need to check the box asking if the loan had been refinanced.
May I inquire of each of you users in this thread: Have any of you successfully e-filed your return? I ask because TurboTax typically prohibits e-filing if the program is overridden in Forms mode. I'm curious if the program is considering your changes in the worksheets an override. Thanks in advance.
This is definitely still an issue. Having the same problem. Overriding in forms will resolve the input on the actual forms, but then how do we revert back to the easy steps and efile? Appreciate everyone who has commented, but I sure wish we could get some turbo tax eyes on this!
Are there any users in this thread that would be willing to submit a diagnostic file to TurboTax regarding this issue? TurboTax has yet been unable to duplicate the issue, and a diagnostic file from any of you would be tremendously helpful.
Please reply on this thread if any of you are willing to share your file for diagnostic purposes.
Thanks so much!
I will submit a file.
I have 3 1098s. Two of the 3 have amounts in box 2. The first 1098 is the original loan, r he second 1099 is a refinance and the 3rd is a transfer. We only have one loan. The amounts in box 2 are the balance on 1/1/19 for the original loan and the second 1098 reflects the balance on the acquisition date.