Reporting multiple home mortgages after refinancing

[praveenkpadia]

I am having issue in understanding how to report home mortgage interest since I twice refinanced last year.

My first loan (Say Loan 1) was closed on 03/06/2019 

My second loan (Say Loan 2) was closed on 10/16/2019

Looking at the "Home Int Wkst"

Loan 1: (appx 2 months)

  The avg loan balance is 1/2 of loan balance at the beginning of the year. 

Loan 2: (appx 8 months)

  The avg loan balance is still 1/2 of loan balance at the beginning of the new loan

Loan 3: (appx 2 months)

  The avg loan balance is nearly the full loan

Basically, turbotax is treating the 3 loans as 3 separate loans. For the first 2 loans, since ending balance was 0, it made avg balance as 1/2 of the loan amount, but for third one, since the start and ending balance is nearly same, it treated as avg of first and last months balance.

This is resulting in a relatively much higher average loan balance (nearly 2x).

How do I make sure turbo tax understand that they are just refinance of a single loan.

Thanks

[Critter-3]

You must enter them in the order that they happened and indicate you refinanced the home both times ... just follow the interview screens and answer the questions as you proceed ... I suggest you delete all entries so far and start fresh ...

[praveenkpadia]

Thanks Critter-3 for your response. I tried to follow your suggestion but still no help. I deleted all my mortgage related entries. When I enter entry for Loan 1, it asks for whether this loan was original loan to buy home

Loan1:

  Q: Yes, this is the original loan I used to buy or build my home

  Q: No, this is a home equity line of credit, or loan that's been refinanced

I selected first option. I did not get option whether loan was paid off in 2019 as you suggested. So, I went to the forms and changed (9) Check this box if you refinanced your loan wit a different lender (I checked the box), And in worksheet section (D) Date the loan was paid off, I put the date 03/06/2019

I save and restart turbo tax just to ensure turbo tax recalculates my taxes. After I restart, and go over my earlier entry again, now I see a new page one of the question on the page is "This loan was paid off or refinanced with a different lender in 2019" with checkbox selected. Which directly represents that my changes in forms took effect. Not sure why this question was not asked when I initially entered the loan 1 detail.

In the same way I entered the detail of loan 2, except I selected No for this question and once again edited the form as I did for Loan 1 and set the loan payoff date.

Loan2:

  Q: Yes, this is the original loan I used to buy or build my home

  Q: No, this is a home equity line of credit, or loan that's been refinanced

Finally, I deleted both Loan 1 and Loan 2 again and this time I started with "No" answer for above question for Loan 1, but as far as average loan balance is concerned nothing is changed in either approach.

[praveenkpadia]

For your reference, the problem is not limited to me. It seems it is seen by many others.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-refinanced-and-have-two-1098-f...

[Critter-3]

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632