I refinanced and have two 1098 forms

[DaveF1006]

At the present time, this is a known issue with Turbo Tax. Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the 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.

[EnjoyABQ]

@HuntlyG There is a solution if you have the desktop version. Otherwise, you will need to wait for TT to update online. 

[Balto88]

This does not work, it adds both together so you will not get the credit for all the interest you are trying to report.

[DMarkM1]

As @DaveF1006 mentions above:

"At the present time, this is a known issue with Turbo Tax. Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the 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."

[Taxpayer90]

Any updates on this? Also I did not become aware of this issue until now. My taxes from last year were probably messed up as well. Who can I contact for them to analyze my last year's tax return?

[JamesG1]

Some TurboTax customers are experiencing an issue with their home mortgage average balance. This can cause the home mortgage interest to be incorrectly limited.  This may be affecting your tax return.

Please sign up for email notifications when an update related to this issue is available here.

See also this TurboTax Help.

[g92069]

You can over ride the online version as well. 

[Taxpayer90]

How do you do that? 

[ReneeM7122]

You can enter multiple 1098s for a single property.  Enter them one at a time. After going through the interview steps with the first lender, you can add the second one when you get to the Mortgage deduction summary screen.  In the case of a refinance, it's best to enter the 1098 from your original loan before the 1098 from your refinance.  This will help the software to recognize the correct origination date of the loan.

That's important because [only] the acquisition debt remains deductible against your taxes.  The loan origination date section should present itself correctly when the software recognizes that you've entered two 1098 forms.  

Here's how to enter your mortgage interest statement in TurboTax:

1. With your return open, search for 1098 and select the Jump to link in the search results.
2. Follow the instructions to enter your 1098 info.

@Taxpayer90

[Taxpayer90]

@g92069   How did you do that? This is still not fixed and none of these "solutions" are working. Still adding up the outstanding balance and crushing my return.

[doT]

I adjusted mine by doing the following (This is from my post from last years taxes but have not confirmed this years but I'm assuming it's the same reading all the responses on here)

There is a bug in the CA form and there is no way around it using the Step by step in the federal section.  The only way i could fix it is by manually adjusting the amount in the CA state Step by Step when it asks if there is any adjustment for interest and points reported on FORM 1098.  The adjustment that TT is calculating is $1,100,000/'total loan(s) amount (incorrectly calculated by TT)l' x total interest  minus the federal interest deduction.  If you are below the $1,100,000 in mortgage loan amount then just simply take the total mortgage interest minus the adjusted federal mortgage interest and put that number there.  It should be a positive number.  This brings the full interest being deducted in the CA forms.  It's a ridiculous workaround and honestly should be fixed.  

Hope that makes sense.  I have another post somewhere describing how I calculated the correct amount to deduct.  

[jaidyn20]

Well i have two 1098 for HELOC that was refied, and three 1098 for main mortgage. (was refi'd twice last year) so this is super fun. Before i seen this post i elected to have the personal tax specialist thing because I could not get past that error about my mortgage being over 750K either when its not even close to that, but its adding them up. Then the HELOC in there is also messing it up.  Well now i have to pay $175 or something for this ta specialist when its clearly a TT bug and i need them to release the portal back to me. I cant do nothing with it when they are controlling it now ugh. 

[LinaJ2020]

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

Limited interest and points must be entered

Home Mortgage interest being limited

Thank You for your patience. 

Your 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) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.

For tax years before 2018, you can also generally deduct interest on home equity debt of up to $100,000 ($50,000 if you're married and file separately) regardless of how you use the loan proceeds.  For details and learn more, click here: Home mortgage interest limitation

[Jsanford9027]

This is happening to me as well is my 2020 return. Entered two 1098's for an original and refi. Pushes my total mortgage amount over 750K forcing me into standard deduction. Hours on the phone with "Experts" claimed "I don't know what's going on, but it's not working correctly. Try again later." Tried submitting a refund request and was denied. At this point I am just going to go use taxslayer.

[Taxpayer90]

@Jsanford9027  I spend over a hour with someone and they can’t figure it out- can you let me know how taxslayer goes? I tried HR block and the same thing happened :/.