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KrisD15
Employee Tax Expert

Issue with "Limited interest and points must be entered"

If you have already entered the 1098 and are now looking for the adjustment screen:

Click Federal

Click Deductions & Credits

Scroll down to "Mortgage Interest and Refinancing (Form 1098)" and click Edit/Add

On the "Here's your 1098 info" screen, click Done

The next screen asks "Do any of theses situations apply to you?" CLICK THE YES RADIO BUTTON and continue 

Enter the amount you can claim 

 

@akira851338998

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JanW
New Member

Issue with "Limited interest and points must be entered"

I am using the online version and do not am not seeing the "Do any of theses situations apply to you?" question no matter what I try.  Also solution suggested to change the worksheet response from "yes" to "no" does not seem to be available in the online version. 

Seems that many people are having this issue.  Please respond with a solution that works asap.

KrisD15
Employee Tax Expert

Issue with "Limited interest and points must be entered"

Online

Click Federal then Deductions & Credits

Scroll down to Mortgage Interest and Refinancing (Form 1098) and click Edit/Add

On the "Here's your 1098 info" screen, click Done

The next screen should ask "Do any of these situations apply to you? 

CLICK YES

Click Continue

On the next screen, adjust for the full amount.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

Issue with "Limited interest and points must be entered"

This is not working solution

kvalluru
New Member

Issue with "Limited interest and points must be entered"

Thank you very much Itguy4123!! I had to fill my returns from the scratch all over again as whenever I enter something here, it was raising the money I owe to fed by a significant amount although we don't fall under this category. Your tip to edit the forms directly helped me the agony!!!!

Issue with "Limited interest and points must be entered"

I'm having the same issue. I have 2 1098's for 2 separate properties. I'm using TT Online. I've deleted and re entered the 1098's with the same issue during review. How do I get into forms so I can uncheck "Yes" on "Does you mortgage interest need to be limited:"???

 

Issue with "Limited interest and points must be entered"

Hello everyone. I am having this issue as well. Has anyone found any working solutions?? I am an online user so do not have the forms option described. I have deleted and re-entered my 1098's to try to get the "do any of these situations apply to you?" and it does not show up. This is super frustrating as I can't figure out a workaround here, and it's the only hold up I have from filing!


Thanks in advance to anyone who can help!! I'm really unsure what to do from here if I can't find a solution.

Issue with "Limited interest and points must be entered"

Has anyone found a solution to this? I'm getting this prompt in 2021. I'm using the online version of Turbo Tax and it won't let me change the "Yes" to "No". I tried entering 0 in the input box that it was prompting me with and now my refund has dropped ~$1.5k. I deleted my 1098s and re-entered but it appears it has saved that old value and I can't get the prompt now.

Issue with "Limited interest and points must be entered"

I am having this problem. I've never paid for points, so I'm confused what to put in this box, but it's not allowing me to submit without it!! HELP!!!

kdannucci
New Member

Issue with "Limited interest and points must be entered"

I am having the except same issue. Turbotax - please fix this for your online users ASAP! This is the only thing keeping me from filing my taxes. 

LeanneVi2
New Member

Issue with "Limited interest and points must be entered"

YES!  I have this issue to. I actually did my taxes a second time under a new user name because I couldn't figure out the issue!  Please fix this!

cmonkey76
New Member

Issue with "Limited interest and points must be entered"

I am having this same issue on 01/30/2021 but can not figure out how to fix it!  Getting very frustrated.  I do not get a forms to view option.  

Issue with "Limited interest and points must be entered"

So I was able to resolve this by purchasing the downloadable app version which allows access to Forms mode. It took me about 2 hours to re-enter everything but I was able to get my refund back to where it should be. I spoke with customer support and I have a pending request in to refund the $115 that I had already paid for the online version.

 

The issue that I was having is that the loan that I refinanced was being added onto the total balance that included the refinanced loan. My original loan balance was $452k and we refinanced in 2020, so that loan was paid off and a new loan was taken out for $451k. The average of the two loans clearly doesn't exceed the $750k threshold, but in the Deductible Home Mortgage Interest Worksheet, the total being generated is $900k, triggering the "limited interest" flag.

 

Per TurboTax's example specific to a refinance in this situation:

 

George secured a $750,000 loan to purchase a home in January of 2019. In August of 2019 George refinanced the home when the loan balance was $740,000. George obtained a new loan for $800,000 to refinance the outstanding home loan, but uses $60,000 to pay off credit card debt and for closing costs on the refinance. George would be limited to deducting only interest paid on $740,000 of debt.

The way that I interpret that is, since I didn't take any money out of the loan, I should be able to deduct the mortgage interest on the average of the two loans which is $451,500k, which is well below the limited interest threshold.

 

This article has some good information: https://www.hsh.com/refinance/how-does-a-refinance-affect-your-taxes.html

 

I am not suggesting anyone do this because I am not 100% sure that it is the correct approach. I went through the Home Mortgage Interest Worksheets line-by-line and made sure everything was correct as best as I could interpret the instructions. It would be nice to get some additional support/clarification on this from TurboTax as there was a refinance boom in 2020 so I imagine this will be a common occurrence.

 

Good luck all,

Kevin

Jantoven
New Member

Issue with "Limited interest and points must be entered"

Kevin,

 

How did you go about actually resolving it, though?  What did you do / enter to get it to acknowledge that you only had 450k (and thus could deduct all your interest), and not 900k?  I am having this same issue.

PMAK
Level 2

Issue with "Limited interest and points must be entered"

This does not work. When I click on Edit/Add the mortgage deduction it takes me to a screen that says "Your 1098 info so far", and it lists the two amounts, one from my original loan and one from my refinanced loan. At the bottom there is only a continue button, not a done button. When I click on the continue button, it takes me back to the main deductions screen, and I am never asked "do any of these situations apply to you?".

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