Full mortgage interest deduction is not carrying over to Sch A

[Tabascocat]

For the life of me, I can't figure out how to enter mortgage interest.

Home value is less than $750k. I itemize deductions.

Refinanced on 6/10/20. Received 1098 for old loan. Interest is $10,664.

On 7/27/20, mortgage was sold. Received 1098 for this interim loan. Interest is $905.

Received third 1098 from current loan holder. Interest is $7,835.

Total of $19,404. But Turbotax is only entering $10,822 on Schedule A.

As best I can tell, I qualify for the full interest deduction. What am I getting wrong, please?

[ColeenD3]

Home Debt Over $375,000

Under tax law, you are limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you. 

If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms. 

Follow these steps to enter your mortgage information:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

What if I have more than two 1098s?

You should combine all of the 1098s directly related to the refinance and enter it as one 1098.  An example of this is if you refinanced two loans into one loan. Any 1098s not directly related to the refinance should get entered separately.

What if I paid points?

Points on Loans Paid Off in 2020: Enter the points on your 1098 you have started and mark you paid off the loan when promoted.

Points on Loans on New Loans: You will want to enter a separate 1098 to cover these points paid. When prompted, enter 0.00 for Boxes 1, 2, 5, and the Property (real estate) taxes box, and checkbox 7, as you’ve already entered the details on your first 1098. For Box 3, add the date in 2020 when the loan originated.

For more instructions see this link: Mortgage

[Tabascocat]

Where in the tax code does it state that there are limits for home debt over $375,000? Even the draft IRS  Publication 936 (dated 11/23/2020) states that the limits apply to home debt over $750,000 (married filing jointly.) Did the law change since then?

[LinaJ2020]

Since you have more than two 1098's forms, I will recommend you to combine all 1098 forms and enter as one.  The limits apply to home debt over $750K does not change.  I am attaching a TurboTax link for the instructions how to do claim your mortgage interests.  Click here:

Multiple Form 1098s

For tax years prior to 2018, your mortgage interest deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status). Beginning in 2018, this limit is lowered to $750,000.  For more information about the mortgage interest deductions, click here: Mortgage Interest deduction