Refinanced mortgage interest deduction on primary and second home not correct

[davedski]

Using EasyStep entry, I entered 1098 data for both mortgages which were refinanced in 2021 and total much less than $750,000.  The total interest shown on the Schedule A form is an amount of approximately half the total combined interest, but not equal to either of the individual interest amounts. 

Upon looking a the forms for Home Int Wkst for each mortgage, the Smart Worksheet section entry B is NO, but it actually is a refinance of a previous loan, so it should be YES.  When I change this to YES for each refinanced mortgage, then both mortgage interests are correctly totaled as a deduction on Schedule A.

Is this a bug or am I doing something wrong?

[davedski]

Correction to my original statement. Only the second home mortgage interest is reported, and that amount is correct for that mortgage.  Additionally, the prorated points amount is correctly shown as a separate deduction since they are to reported on the 1098 form.  So for some reason I am not being given a deduction for my primary residence mortgage interest.

[Cynthiad66 · Accepted solution]

I suggest as a work around that you use the procedure you identified to changing the answer to YES for refinance so that you can get the correct deduction.  As long as you have the correct amount for tax processing that will satisfy the IRS as they have that information already.

@davedski

{Edited | 3/13/2023 10:38AM PST}

@davedski

[davedski]

Thank you Cynthiad66 !   I’ll use the work around you confirmed.  Last year’s TurboTax calculated this all correctly.  When I looked at the “Smart Worksheet” for last year it seems there were a little bit of difference in the fields listed there compared to this years.

Dave