How to turn off limited interest for mortgage???

[sg29]

TurboTax keeps trying to ask me to enter limited interest amount for mortgage. I have 2 1098 this year since I refinanced. I have quadruple checked my answers when inputting them into deductions section and everything is filled out correctly with stating their origination dates and saying that it's refi and stating that the first one was refinanced during 2020 and so forth and that both are on main home. The first is for 656k and refi is for 669k. It seems like TurboTax has a bug and it's summing them together and making it think I'm above the 1 Million limit and asking me to put in the interest limit. I've read others hit this problem and they go into the form and click on the "No" for something like "Should this mortgage have limited interest". I can see the radio button for Yes/No on this question in the form but the "No" is disabled and I cannot click it. This is true on desktop web and iOS mobile app. I've spent hours on this now and I can't figure out how to tell TurboTax that they've got it wrong.

[PattiF · Accepted solution]

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the Home Mortgage Interest to be incorrectly limited.

If you're experiencing  the issue above,  please go here to receive email notifications when any updates related to this issue become available.

[EyeMaTurtle]

Still not fixed!!!!!!! Program is combining my original loan balance with refinance balance making it look like my mortgage is twice as much as it is, thereby limiting the amount of mortgage interest I can deduct. I cannot uncheck the "does your mortgage interest need to be limited box." I am using Turbo Tax Premiere 2020

[KrisD15]

Enter the 1098(s) as reported. Box 2 should not be blank. Box 2 is the balance of the loan on 01-01-2019 OR the balance on the day the loan was taken out in 2019. Answer the interview questions carefully.

If you get an error concerning the balance, please follow these directions:

ONLINE USERS:

Please go back to the Home Mortgage Interest section:

Click Federal on the left side-bar

Click Deductions & Credits along the top

Scroll down to “Mortgage Interest and Refinancing (Form 1098)” Click Edit/Add

Scroll down the “Here’s your 1098 info” screen and click Done.

Next screen asks “Do any of these situations apply to you?” Select “Yes, one or all of these situations apply to me.” and Continue.

On the following screen, you will see the “Original amount”.

Enter the amount you can claim as a Home Mortgage Interest deduction in the “Adjusted amount” box. The Adjusted amount cannot be larger than the original amount or you will receive an error when trying to file. Instructions on who needs to adjust interest and how to calculate are available by clicking the blue “Help me figure this out” link.

DESKTOP USERS:

Go into Forms (top right)
Enter the amount on Tax & Int Wks
Mortgage Interest Limited Smart Worksheet section
Line A2

OR

Step by Step

Federal

Deductions & Credits

Mortgage Interest, Refinancing and Insurance Click Update

Click Done

Click Yes, one or both of these situations apply to me. And Continue

Enter the Adjusted amount and Continue

[gbubbles77]

I am having the same issue, where do you see the questions. "Should this mortgage have limited interest"  I have a $900k mortgage and in 2020 I refinanced my original mortgage and a non cash out loan and now it is limited me to the $750k limits.  Everything I read said as long as you didn't take cash out you should still be able to go up to the $1m limits and never had an issue until trying to do my 2020 taxes.  I spoke to a CPA with turbo tax and they seamed to agree with me that I should still be able to take the full deduction but it does not seam to be working. 

[DMarkM1]

You are correct, any amount from the original loan (prior to Dec 2017) that is refinanced in 2018 or later stays within the same rules as the original loan. 

In TurboTax desktop products you will need to use the steps outlined in this link to avoid the incorrect limitation.  

These steps can also be found in the step-by-step interview when entering mortgage forms 1098.  The hyperlink is titled "Multiple 1098s related to a refinance in 2020."