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Level 3
posted Feb 1, 2021 11:01:20 AM

TurboTax's Erroneous Forced Addition of 1098 Mortgage Principals

Recently loved the suggestion from TurboTax customer service telling me there's an investigation being opened up, but gave me the advice of entering fake numbers, checking to see if the refund increased or decreased. To quote them

 

"In this sample scenario, if the refund does NOT increase after the 2nd loan you will need to wait till the investigation has successfully been resolved. Again, we apologize for the inconvenience. 

 

If the refund successfully increases after the 2nd loan you may now switch back to all the actual information of your loans and see if the refund increases from first to the 2nd loans. Otherwise, you will need to contact the lenders regarding possible error info in their 1098 mortgage interest forms."

 

Of course, the fake numbers they gave me didn't add up to > $750,000. It obviously didn't work because (the fake numbers) 194,810.41 + 222,187.50 = 416,997.91, which is obviously less than $750,000. My mortgage principals should be reported as 385,000 and 384,310.56, which together are greater than $750,000, therefore triggering the software to limit my mortgage deduction.


This is not a way to check if my mortgage lenders gave me incorrect 1098s. This is the software forcing an erroneous combination of the 1098s and I'm tired of customer service not understanding that, especially when so many people have reported it as an issue.

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1 Replies
Level 8
Feb 2, 2021 2:15:41 PM

We are aware of this experience. Please sign up for email notifications when an update related to this issue is available:

 

ttlc.intuit.com

 

Why is my Home Mortgage Interest being limited?

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the the Home Mortgage Interest to be incorrectly limited. If you're experiencing  the issue above,  please go here to receive email notifications when any updates related to this issue becomes available.

 

Home Mortgage Interest TurboTax