It seems as if your interest has been limited. This situation sometimes comes up when entering your home mortgage interest. The following steps should resolve your issue:
1. Log into TurboTax and choose Deductions & Credits.
2. On the page “Your tax breaks”, select Mortgage Interest and Refinancing (Form 1098) and Start.
3. Delete any Forms 1098-MTGE you have already entered in the program. Then choose the button “Add a 1098”.
4. Enter the details from your FIRST Form 1098 – the one from your old mortgage company or before the refinancing occurred. Be certain to enter all the information, including the amount in Box 2 of your 1098. According to the updated 2019 instructions for Form 1098, Box 2 should show an amount. For a loan prior to 01/01/19, the amount should be the balance of your loan as of 01/01/19. For the loan taken out in 2019 (including refinance loan or when the loan is sold to another mortgage company), the balance should be as of the date of the loan origination.
5. Continue through the interview until you reach the screen “Was this loan paid off or refinanced with a different lender in 2019?” If you’re entering the original loan, say No.
6. On the screen “Is this loan a home equity line of credit or a loan you’ve ever refinanced”, say No.
7. Continue to complete the first 1098.
8. Add your next 1098. Be certain to enter all the information, including the amount in Box 2 of your 1098. If there is not an amount in this box, please contact your mortgage lender for the amount. It is required for an accurate calculation.
9. When you reach the screen “Is this loan a home equity line of credit or a loan you've ever refinanced?” say Yes. Select the correct radio buttons and Continue to complete the interview.
10. Click Done. If presented with a followup question about the interest limitation and your loan balance is under $750,000 then your deduction is not limited - say No. If your loan is over $750,000 then the deduction is limited. Say Yes. You will need to manually calculate the adjustment. Please see Page 12 of IRS Pub. 936 for a worksheet that will help you calculate the amount.
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