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Again, this is not a solution, when will Turbotax update the software to resolve this bug???
This was supposed to be fixed by yesterday and its still an issue
@KrisD15 Except that the program doesn't actually allow you to do what you suggest. You can't override the allowable deductible amount anymore - that may have been a solution in years' past, but it doesn't work this year.
One way this whole thing could be resolved is for TurboTax to actually admit there is a bug in the software that needs to actually be fixed, as opposed to continuously brushing it off and instead offering a multitude of workarounds and band-aids to get around the programming error. And make no mistake, that is what this is - a programming error.
I would suspect that there will be a fairly large contingent of TT customers who will be overpaying income taxes this year, as it is easy to overlook this programming error that leads to an overstated tax liability.
This issue is not expected to be addressed in an update at this time. Instead, adding the documents to enter as one is the suggested workaround. It does not cause any problems with the IRS as each individual 1098 is not linked with the return, but rather a total is all that is reported on the tax form. Entering each separately (or together) is a function of the software inputs to come up with the numbers for the tax forms - those questions are not on the tax form itself. Therefore, there is no audit trigger concern here. It's not convenient to do it this way, but currently it's the best way to get the proper result on your tax return so that you can file your return.
This is totally unacceptable that Intuit has not fixed this bug that was already there last year!
I too have refinanced my home mortgage in 2020 and turbotax adds up the amount of both loans (old and refinanced one) together, which brings it over the $750,000 limit ($1,000,000 for California) and makes my mortgage interests not fully deductible.
I noticed it this year because it affected my federal tax return as well as my California Return. But then I realized that I refinanced in 2019 as well. So I revisited my 2019 tax return and realized that my California tax return was incorrectly calculated and that I overpaid taxes by over a $1000!!! There was no warning or anything in Turbotax back then for me to notice this error.
The federal return was fine in 2019 because I guess that $750,000 limit is new this year whereas California had a $1,000,000 limit in 2019 as well.
So now I am having to file an amended California tax return for 2019 to get my money back and hope that it works out. If it does not, I am going to have to sue Turbotax to get my money back or something!
This is beyond ridiculous, so many people are affected by this bug and Intuit sits on it, doing nothing about it for at least over a year. Makes me wonder what other bug is hidden and costed me money on taxes all these years. This is definitely the last year I am using Turbotax. I would switch for this year as well if I hadn't spent all this time doing my return already.
@SusanY1 The last poster demonstrates exactly why allowing this programming error to persist is a problem. Many TT users may not even realize that the program is incorrectly calculating the average mortgage balance, and unnecessarily pay more in taxes than is required. This happens simply by following the step by step instructions. And now, some who realize TT’s mistake after the fact have to deal with filing an amended return to try to claw their money back. Thus, living with a “work around” is simply unacceptable for a software company who touts some kind of “100% accuracy” guarantee. What ever happened to that?
How can TT possibly go this long with no fix?
People have all been talking about a class action lawsuit against them
This issue is STILL here in 2021 for 2020 tax year.. Tick tock.. Turbotox/Intuit, this is unacceptable. So many people probably have lost money due to Intuit's negligence and this is really wasting so much of the customer's time. I am seriously tempted to just move to a competitor at this point.
attempted to resolve the multiple 1098 forms by attempting to selection "'No" on the "does your mortgage interest need to be limited from yes to no...text is black while your example is blue...i am not able to address this after waiting over two months for a resolution...extremely disappointed with turbotax this year disappointed.
Thank you, thank you, THANK YOU! This worked!
Your answer should be moved up to the TOP of the list!
I'm working in TT 2020 & could not get the Limited Interest amount onto Sch A, Ln 8a, UNTIL I did RIGHT CLICK to bring up the menu with "Override" & enter the Limited Interest amount on Ln A2 and Ln 5e. BINGO - correct Limited Interest amount is on Sch A, Ln 8a. Finally!
Is there a way to do this one the Website?
If you have multiple1098s relating to an Original Mortgage and a Refinance (or sold loan), click this link for info on Multiple 1098s from Mortgage Refinance.
Remember when entering 1098s into TurboTax that you want your Original Loan to have a Loan Balance of $0. You want your Refinance Loan to have the correct mortgage balance.
where is the ability to put this information in....as directed and explained in the IRS pdf web page...?Worksheet To Figure Your Qualified Loan Limit and Deductible
www.irs.gov/pub/irs-pdf/p936.pdf
"each individual 1098 is not linked with the return, but rather a total is all that is reported on the tax form"
Please see the Help Article here in regards to the Deductible Mortgage Interest Worksheet. You can sign up for updates on this as well.
I live in Ma all the interest in the mortgage is Deductubeled
There is no Mortgage Interest Deduction in Massachusetts.
Click this link for more info on Massachusetts Tax Deductions.
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