Schedule A box 8a shows different mortgage interest than what i entered in the questionaire

[Cynthiad66]

There is a known problem with Home Mortgage Deduction.  TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades.  We have not been given an  expected date for the fix yet.  Please check back often to see if you can file your return.

OR

In the meantime, you can try this work around.  You did not provide the details of your Mortgage situation and therefore I am giving you a general work around that might help.  Please try this.

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file. 

[jkelleynv]

Thank You!  That fixed the problem!

[Andrew-L]

It seems like this is still an active issue in turbotax 2023. I had my mortgage transferred from one provider to another and this same problem is happening. 

[DMarkM1]

In the case of a mortgage that just changed lenders the loan amount for the first lender can be excluded in TurboTax.  Here are the steps. 

1. Navigate to the "Mortgage Interest" topic
2. Edit the oldest 1098 entry
3. Verify the form 1098 entries match the form
4. You will arrive at question asking "Is this the most recent 1098 on the loan?"  Answer "No"
5. Continue/Verify the remaining entries for that 1098
6. Do not click "Done" 
7. Instead Edit the current 1098 entry
8. Verify the form information
9. When you arrive at the question asking about "The most recent 1098..." Answer "Yes"
10. Continue/Verify the remaining entries for that 1098
11. This time click "Done" at the bottom of the page
12. You should be asked about the beginning and end of each of the loans
13. For the old 1098 you will show the pay off amount and date
14. For the current 1098 you will show the ending balance on 31 Dec 2023 (or 1 Jan 2024 typically)  with no pay off date
15. These entries should trigger TurboTax to ignore the prior 1098 loan amount in calculating the limitation.

[Andrew-L]

Hi,

I followed these steps, which match exactly what I had previously, and i still get the same result. "your mortgage interest is being limited". 

I am using the adjustment prompt to input the correct value. The calculated value is not as expected. 

It should essentially be the same as if I combined the values of the mortgage interest paid of the 2 mortgages together since it was just a mortgage handler swap. 

[zomboo]

Tell us more about your loan. Was the original taken out in 2023? I the balance over $750K?

[Andrew-L]

The original loan was taken out in 2018 for an amount greater than $750k. It was refinanced in 2020 to BELOW $750k, around $740k.  (no cash was taken out). 

This year it was transferred from 1 mortgage broker to another by the mortgage companies. so I have 2x 1098s. 

[zomboo]

The desktop version of Turbo Tax seems to handle this. Here are the key entries I made:

When entering the 1st Loan:

1098: Box 2: $740,000, Box 3: 05/01/2020 (Date of Refinance), Box 11: Blank

Is this the most recent 1098? NO

Is this loan the result of refinancing a previous loan? YES

Did you use your loan for anything besides paying off the existing loan: NO

When entering the 2nd Loan:

1098: Box 2 $730,000, Box 3: 05/01/2020 (Date of Refinance same as 1st loan),

Box 11: 4/01/2023 (Acquisition Date)

Is this the most recent 1098? YES

Is this loan the result of refinancing a previous loan? YES

Did you use your loan for anything besides paying off the existing loan: NO

All of the interest I entered was deductible on Schedule A. Box 3 should be the same date or at least within a few days on both 1098s. Box 11 should be blank on the first 1098 and contain the date the loan was transferred to the new lender on the second 1098. When you look at the worksheets for the loans, it may have missing data like the amount of premiums paid. Don't worry about that. Turbo Tax didn't need that info to figure the deductible mortgage.