The mortgage interest deduction does not seem to be working properly for me. I have two mortgages. I entered the first interest amount and the tax owed did not decrease?

[DMarkM1]

You can work this in the online version of TurboTax.  You should enter the box 2 information as it is on the form 1098s.  TurboTax will subsequently ask you if you exceed the mortgage limits or not.

• Mortgages that were taken out on or before December 15, 2017 and they total more than $1 million ($500,000 if Married Filing Separately).
• Mortgages that were taken out after December 15, 2017 and they total more than $750,000 ($375,000 if Married Filing Separately).

If you do not exceed the limits, then you select "No" for this question in TurboTax Online and your mortgage interest deduction will not be limited. 

If you select "Yes", then you will need to manually calculate the mortgage interest deduction using table 1 on page 12 in publication 936 and enter the amount in the box provided. 

[cciancio15]

This issue is happening in TT 2019 Premier.

The workaround is described in AndreiL's response.  Thanks !!

[westendgriffins]

A definite big.  Once I unchecked the limit box, it calculated correctly. 

Thank you!

[mtimbone]

I had this same issue in 2020 working on the 2019 Tax year returns.   Your solution worked.   Shame on Turbo Tax.  I almost paid $5,000 in extra income tax because of improper calculations.

[TNAKNAK]

YES YOU ARE A GENIUS, ANDREIL!!! I TRIED EVERY OTHER SUGGESTION! Secured by property, Box 2=$0 for second lender (TurboTax wouldn't allow this). Clicking on the box in the Tax & Int Wksht worked like a charm!! Refund back!!

[kevingue]

I am an online user; I fell into this trap when asked a follow-on question during Review. TT sent me to a box asking something about a limit—I foolishly put "0" and pressed Continue. Presto: my entire deduction went poof. Now I cannot force the online TT to show me the form so I can adjust this box.

I have deleted and re-entered my mortgage info several times, but no joy. The process recommended by DMarkM1 above does not work (TT does not ask if I am exceeding a limit; it just goes forward). I have now downloaded the desktop product in hopes that I could use the other workaround in this post, but I cannot figure out how to transfer data from the online to the desktop version. Tell me I don't have to redo my entire return, please.

Any help would be appreciated. Absolutely furious with this defect!

[RobertG]

Transferring data from online to desktop is a two step process.

First save your TurboTax Online return as a tax data file, then move it to the CD/Download software. 

1. Sign in and open or continue your return.
2. Select Tax Tools and then Tools from the left menu (on mobile devices, tap in the upper-left corner to open the menu).
3. In the Tools Center pop-up, select Save your 2019 return to your computer.
4. The file will download with the name taxReturn.tax2019.
5. (Optional) Locate the downloaded file and change the default filename to something more recognizable, for example JohnDoeTaxReturn.tax2019 (just make sure you don't change the filename extension to the right of the dot).

Your online return is now saved in a format can be opened in the TurboTax software.

If you started your 2019 return in TurboTax Online and want to switch to the TurboTax software, here's how.

1. Save your online return as a tax data file.
2. Sign out of TurboTax Online.
3. Install your 2019 TurboTax software.
   • If you have not purchased TurboTax Desktop software, select the product you need to complete your return.
   • Important: If your return includes a state, make sure you also install the corresponding state program(s), otherwise you'll get Error 539.
4. Once installed, choose File then Open Tax Return in the software.
5. Browse to where you saved your .tax2019 file, select it, and then select Open.
6. If you get an error, delete your tax data file and repeat these steps from the beginning.
7. Optional: Once you've confirmed that your online return opens properly in the software, you can clear your online return.

@kevingue

[rperrino67]

I am having this EXACT same issue.  I refinanced my loan in May.  It seems like TurboTax may be adding the loan balance from that loan to the loan balance from the replacement loan and changing my "no" to a "yes" for having a loan balance over $1M.  How do we correct this? On the back end?

[rperrino67]

The instructions for Box 2 on the 1098 indicate that "If the mortgage originated in 2019, shows the mortgage principle was of the date of origination."  Seems to me the issue lies with TurboTax, not with how we need to report the 1098.

[KrisD15]

If you report that the loan was a refinanced loan, the balances should not be added. 

You can return to the screen that asks if the interest could be limited, answer Yes rather than No and adjust the interest to the full amount. 

You can also go to the screen for Mortgage Interest Deduction and click "How did you calculate my mortgage deductions?"

[robert_delargy]

Going to forms worked for me. The step by step kept limiting the mortgage deduction, no matter what I did. This is big glitch they need to fix.

[avergnetti]

This worked for me also. No other suggestion did. Also seems to be a bug to me.

[Acehard]

I don't see that form button

[MayaD]

Deductible mortgage interest is any interest you pay on a loan secured by a main home or second home that was used to buy, build, or substantially improve your home. Beginning in 2018, the maximum amount of debt is limited to $750,000.

You can deduct the mortgage interest only if you itemize your deduction.

To report form 1098 on your return:

• Login to your account.
• Select Federal from the left menu.
• Go to Deductions and Credits.
• Scroll down to Your home 
• Click start next to Mortgage Interest, Refinancing and Insurance.

[mayurrekha2021]

this indeed is the issue, but It's not letting me modify the field