TurboTax Premier Not Deducting Mortgage Interest on Refinanced Mortgage

[Lfried3]

Thanks, I've seen this link.  Am I not entering false information on my taxes then?  

[samrom90]

@LinaJ2020 Can I ask you to personally guarantee that forcing me to do my own calculations will not nullify TurboTax's guarantees?

[SoCalGal40]

Thanks! This worked for me. I've never had trouble before with TurboTax reporting two 1098s so it was a bit annoying! Your fix worked though! Thanks!

[GMH2]

I am so angry. I spent six hours doing our taxes--and our taxes are not that complicated! TurboTax is not doing any deductions. I cannot deduct the interest I paid on our home mortgage or our property taxes. I can't deduct charitable donations to our church.

I have used TurboTax for years. I know how to use the program. I am really pissed!

[JohnB5677]

The mortgage issue can be solved by realizing that when you get a new mortgage the old one will have been paid off.

• The mortgage that you had at the end of 2019, (1st mortgage) will have a principle balance of zero, because it was paid off to secure the 2nd.
• The second mortgage will also have a principal balance of zero.  Because it was paid off to secure the 3rd mortgage.
• Finally, the mortgage you currently have (3rd mortgage) will reflect the principal as of 01/01/2021.

The IRS instructions for completing Form 1098 state that box 2 should be the amount of principal outstanding on the mortgage as of January 1, 2021.  If the loan was no longer being serviced by that company, there would be no outstanding principal on that mortgage and the amount should be "0".  

Entering '0' into box 2 in your tax return is the correct way to handle a loan that has been closed out.

To enter your 1098 Mortgage Interest statement.

1. Log into TurboTax
2. Select Deductions and Credits [Review/Edit]
3. Mortgage Interest and Refinancing (Form 1098) [Edit/Add]
4. Add a other 1098 or select your bank
5. Continue to follow the interview

Note: if you enter your property taxes from your 1098 you will not have to enter them again in the property tax section.

Charity donation:

This is a situation that is known and has been reported. 

Clear the amount entered.

Here is the work around for claiming the $300 Charity Deduction:

1. In TurboTax select Federal in the panel on the left
2. Select Deductions & Credits at the top of the page
3. Under Your Tax Breaks -
   1. Charitable Donations 
4. Click START to the right of Donations to Charity in 2020
5. Click YES
6. Click ADD next to Money
7. Type in the name of the charity that you donated to
8. Type the amount of the donation
9. Select Done with Donation
10. Select Done

Now the $300 will appear on Line 10B and in the Charitable Contributions screen

CARES Act $300 charitable deduction

[gustavee]

That didn't work for me. Just delete the morgage lender and try again.

[jmulready]

That's my problem, but I don't know how to edit the form.

[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.

See this TurboTax Help.

[seniorfam]

how do you sign up for updates?  My mortgage interest deduction is not being calculated correctly.

[DMarkM1]

Here is a fix for the mortgage interest calculations.  Try the steps in this link to combine the forms 1098 (loans) entered in order not to incorrectly trigger a limit on the interest deduction due to loan amounts being too high.  

[krperry]

One other way to fix the Mortage Interest Limitation is to go to Forms: "Ded Home Mort" then Rt click and Override the Part 1 Line 7 figure for "Average balance of debt..." and put in a time weighted average from the 2 (or more) loan balances. 

I did the above fix on "Tax & Int Wks" and got most, but did not allow 100% of my amortized points.

[JKARNOLD]

I have two 1098's one original loan and a refinance.   Same property and under the 750k loan restriction.  Interest was 20k but Turbo tax does not allow me to deduct all interest when I enter separately.  Turbo tax says to combine both the 1098's and enter as one entry and not two.      This seems like band-aid fix to a real problem.   

[Stoney35]

I agree. I refinanced twice last year and both times the loan was sold so I actually have five 1098’s for my return. So if I combine them to one, which one should I list as the Lender as they are all different. 

[DaveF1006]

It  really doesn't matter what lender's name you report  This information does not get reported to the IRS but listed on your worksheets that are not transmitted to the IRS.

[jan_s]

TT20 Premier won't let me check 'no'. How do I fix this? Thanks