Marking my refinance loan as secured by a property I own lowers my refund

[peterwoodson]

I am entering 3 mortgage interest amounts to deduct.  The first (lender A) is for $14,346.  The second (lender B) is for $8986 and represents a refinance in 2020.  The third (lender C) is for $1610 and represents a 2nd refinance later in 2020.  

Prior to entering lender C, my total Federal and State refund was calculating as $17,619.  All of the sudden, when I enter the $1600 mortgage interest amount for lender C, as soon as I check the box saying "this loan is secured by a property of mine" my tax refund goes down to a total of $13,780 and the next screen says "You're getting a deduction of $9,220 for the mortgage interest you paid."  Why would entering the last amount for lender C for $1600 and saying my loan is security by my property cause my deduction to go down, and why would it go down so much?

[ee-ea]

Sign up here

https://ttlc.intuit.com/community/tax-topics/help/why-is-my-home-mortgage-interest-being-limited/00/...

[peterwoodson]

I received the email from Turbo Tax saying there was an update.  I updated and it didn't fix the problem.  I tried re-arranging the order I entered the mortgage deductions, from my original mortgage, followed by my first refinance.  That actually lowered my state deduction by about $500.  Again, when I entered the 2nd refinance, and checked that it was secured by my property, it lowered my refund even further.  

[samrom90 · Accepted solution]

You may be having the same problem a bunch of other people have been having.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-bug-with-refinance-on-a-large...

If, when entering the amounts in Box 2 on your third 1098, the amount added to the amounts in the other Box 2s is in excess of $750,000, TurboTax is improperly combining them and limiting your mortgage interest deduction.

TurboTax has refused to fix this and, instead, is instructing customers to enter information incorrectly and in a manner that violates their own guarantees on max refunds and 100% accuracy in calculations.

Stay tuned for the inevitable lawsuit since this has been a problem for multiple years and TurboTax has almost certainly screwed a lot of its customers out of thousands of dollars because its calculations are, by their own admission, NOT accurate.

[peterwoodson]

Thank you for helping me find the issue.  I am shocked, along with others, that there is no fix and that Turbo Tax instructs us to manually add interest amounts together and enter as one lender.  I have taken a screen shot of their instructions for when I get audited.  Uggg.....

https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-...