Was asked to enter value for 'LImit /int points on 1098' with error 'Tax and interest deduction worksheet: limited interests and points must be entered'

[nestlen]

I have refinanced twice for my primary home in 2019 and principal amount was around $500K each time. In total I received two 1098 form of mortgage interests total about $20k. 

Earlier I had no problem entered the info and saw the deduction, later on after I ran the smart check, turbotax required me to enter 'LImit /int points on 1098' with error 'Tax and interest deduction worksheet: limited interests and points must be entered' and I was confused and entered '0', which made my mortgage interests no longer deducted from the application. I have tried removing all 1098 forms and re-entered again but it didn't help.

I have followed the steps to entered my 1098.

Any idea how can I fix this?

Thanks in advance!

[DianeC958]

You need to delete the Tax and Interest worksheet.

1. Open or continue your return in TurboTax.
2. In the left menu, select Tax Tools and then Tools.
3. In the pop-up window Tool Center, choose Delete a form.
4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

[nestlen]

I am using MacOS premier version there is no tax tools in the top menu of turbotax. I saw an option 'Remove form' under tab 'Forms' but it's grayed out. Any idea how can I do it in Mac?

[d00gie74]

I am having the same issue. I used the FORMS on the left side of the ribbon and deleted all the mortgage deductions, added all the information again but am facing the same problem.

[d00gie74 · Accepted solution]

This solved the problem:

Solution: In Forms View, go to "Tax & Int Wks" and scroll down to "Mortgage Interest Limited Smart Worksheet". Assuming it's correct for your situation, change "Does your mortgage interest need to be limited" from Yes to No. 

[nestlen]

wow. thank you for figuring it out. I almost gonna redo it from scratch again

[FFFFFFFFFF]

Can you please describe how to get to the forms view to check no?  I can see how to delete a form but I cannot see how to navigate to a specific form to manipulate the information.

[macuser_22]

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@FFFFFFFFFF wrote:

Can you please describe how to get to the forms view to check no?  I can see how to delete a form but I cannot see how to navigate to a specific form to manipulate the information.

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The form mode is only available on the CD/download desktop version installed on a Mac or Windows computer.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-forms-mode/01/25900

[veroweb01]

When TT does the error check it pops up the form worksheet that has the error.  If you read it you will see the limited question and that the 'yes' box is checked.  Right there on that screen is where I checked the 'No' box.

Hope that helps.

[KrisD15]

@nestlen

@FFFFFFFFFF

ONLINE USERS:

Please go back to the Home Mortgage Interest section:

Click Federal on the left side-bar

Click Deductions & Credits along the top

Scroll down to “Mortgage Interest and Refinancing (Form 1098)” Click Edit/Add

Scroll down the “Here’s your 1098 info” screen and click Done.

Next screen asks “Do any of these situations apply to you?” Select “Yes, one or all of these situations apply to me.” and Continue.

On the following screen, you will see the “Original amount”.

Enter the amount you can claim as a Home Mortgage Interest deduction in the “Adjusted amount” box. The Adjusted amount cannot be larger than the original amount or you will receive an error when trying to file. Instructions on who needs to adjust interest and how to calculate are available by clicking the blue “Help me figure this out” link.

DESKTOP USERS:

Go into Forms (top right)
Enter the amount on Tax & Int Wks
Mortgage Interest Limited Smart Worksheet section
Line A2

OR

Step by Step

Federal

Deductions & Credits

Mortgage Interest, Refinancing and Insurance Click Update

Click Done

Click Yes, one or both of these situations apply to me. And Continue

Enter the Adjusted amount and Continue

[ktc]

Your suggestion is to answer "yes, one or both of these situations apply to me" but those situations don't apply to me. So, are you recommending that I still answer yes?

[KrisD15]

As you say, those situations DON'T apply to you. I understand and applaud your concern for truthfulness. 

I am not a programmer, I'm a tax professional and I am here to give tax advice and help people get through any snags within the software. 

You have the option of deleting the 1098's and re-entering them. When you get  to the screen about adjusting the interest, don't enter zero, enter the amount of interest allowed. OR you can enter Yes and you will get to a screen where you can adjust the interest to the full amount allowed. 

Please be assured that your "Yes" answer would not be entered on any tax documents, it is only for the TurboTax worksheets. It is a "Work-around" to get the right number on your return. 

The tax laws concerning Home Mortgage Interest changed with the Tax Cuts and Jobs Act starting with tax year 2018. Because of this, the 1098 does not provide all the information needed to determine if the interest needs to be limited. Additionally, the reporting instructions for the 1098 change in 2018 and then again in 2019 and not all lenders adapted. I have played with the TurboTax program and would re-word that screen if it were up to me to say "We're not sure if your interest should be limited" but it isn't up to me. 

IF the lender reported the 1098 properly, AND you answer all the interview questions correctly, the program should compute the interest properly. 

If not, answering "Yes" will get you where you need to be in the program and will not alter any tax forms. 

I hope this helps, and thank you for using TurboTax. 

[jlhartman4]

Thanks so much for this solution, OMG! Are you kidding?!! WTF??? The only thing that I would add is that there was no 1098 entry in my forms list, even though I'd entered the data. I made them (and had 5! this year due to 3 refis and my broker selling the loan each time) using the "open forms", and then linking to the "worksheets" (also not in the list), but from there could also create a form. It was maddening. I mention it only because I'm not sure if the "Tax & Int Wks" sheet was even there before I did that, because I found this post after I spent 2 hours creating and recreating 1098 worksheets and forms (which didn't change the tax at all)... and then all I had to do was find the goldmine of a post and link to that obscure"Tax & Int Wks" form and change the checkbox?? Your description is exactly what happened to me. I got an error. Entered '0' in the box, and boom $7K of tax was added. Unbelievable, really. No way to take that zero back! Without this post, I'd still be searching. With that little checkbox, we got our $7K back!! I will definitely let turbotax help/support know if they EVER call me back. Their number is [phone number removed] if you're looking for it, but you may need to navigate their system to put in a request for help and get a case # (I did that and they recognized my phone number and associated it with the help request). Sorry for the long post, but a turbotax FU in the 1098 is kind of hard to believe. BTW, also using MacOS Premier.

[Maddiep]

I just had this issue, I called turbotax today and the person I spoke with was able to ask a few of their coworkers as well. 

For my particular situation I had three 1098's. I was unable to unselect things as I was on the website and not using the desktop program. 

I put the exact same amount that was showing in the first box (line one asking for sum of numbers from line 5a-5d, right above the box where it was asking you to input number for Sch A, 8A), and it allowed me to continue without changing any numbers on my return.

Hopefully this helps others as well! 

[taktaka]

You can not change answer from yes to no on the online version of turbo tax, it simply does not have forms view. According to IRS on line 8a mortgage interest and points reported to you on Form 1098 should be entered unless one or more of the limits on home mortgage interest apply to you.