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Level 2
posted Feb 1, 2021 1:19:57 PM

Refinance in late December, extra 1098 form with $140, reduced mortgage interest rate deduction by $10K

Mortgage interest $24k, Equity Loan interest $11K, both refinanced in late December into one loan with interest paid in 2020 of $139. Without the new loan interest, the deduction is at $35K. If I add the new form with $139, the deduction is reduced to $23K. Is this a calculator error on Turbotax or a tax situation?

This is what Turbotax says:
How did you calculate my $23,509 of mortgage interest?
your $23,509 of mortgage interest is the same as HP3L12 because true.

0 4 871
4 Replies
Level 2
Feb 1, 2021 1:25:15 PM

Similar issue, adding the 2nd 1098 wipes away the deduction, see it reported elsewhere on the message board.

Level 2
Feb 1, 2021 1:31:16 PM

Thanks for the information. The calculator must be broken because adding the amount of the new loan amount (with the new form) seems to trigger a massive reduction/removal of a deduction. 

Level 2
Feb 1, 2021 1:37:32 PM
Level 8
Feb 2, 2021 7:50:22 PM

Here is what we've been informed of as of today:

 

Some TurboTax customers are experiencing the following error message when running the Federal Error Check "Check This Entry: Tax and Interest Deduction Worksheet: Limited Interest and Points must be entered". 

 

We are aware of this experience. If you're experiencing  the issue above,  please go here to receive email notifications when any updates related to this issue become available. 

 

Limited Interest Worksheet

 

Check This Entry: Tax and Interest Deduction Worksheet - Limited Interest and Points must be entered

 

Please note that the IRS is not beginning to accept and process returns until February 12th.