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'

[jlbrick]

There is a software bug when you have multiple 1098s, see the discussion at https://ttlc.intuit.com/community/tax-credits-deductions/discussion/bug-with-refinance-on-a-large-mo...

[LinaJ2020]

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

Limited interest and points must be entered

Thank You for your patience. 

Note that your mortgage interest and property tax might not change your total tax refund.  It will only change if your total itemized deductions exceeds your standard deduction.  In the TurboTax program, when you enter itemized deductions such as mortgage interest, property taxes, medical expenses, charitable contributions, all of these items are added together. Unless the total of itemized deductions exceeds the standard deduction for your filing status, you would not see any change in tax due or refund.  You should receive a Form 1098 which reflects the mortgage interest, points or property taxes you actually paid. 

[Sbaillie631]

I closed on my home in June 2019. It was held by Roundtree Mortgage until October 2020, then sold in October 2020 to Freedom Mortgage. I now have two 1098's to enter with taxes and interest on both. Intuit is asking to enter limited points/interest. After searching forums I decided to enter the same total amount into the box which seemed like a workaround. Completed the review and everything was good. 

Woke up today and Intuit reviewed my file again, came back with two new requests. It now wants me to enter the loan balance as of Jan 1, 2021 and the date when I paid off the loan - for each 1098...

This seems like an error as I didn't pay off or buy my home. Is there a fix for this? 

[JamesG1]

Some TurboTax customers are experiencing an issue with their home mortgage average balance. This can cause the home mortgage interest to be incorrectly limited.  This may be affecting your tax return.

Please sign up for email notifications when an update related to this issue is available here.

See also this TurboTax Help.

[dk6530]

thanks for suggestion.. i have same error and can not e file.   sorry but where is the Forms view??? i asked turbo tax help and they had no idea  using TT premier?

[nestlen]

If you are using Mac OS you can enter 'form view' by clicking 'form' from top left corner.

[gawainmathews]

Hi, I'm having the same problem as you've helped solve here (limit int/points on 1098), but i'm unable to check the "No" box after the question: "Does you mortgage interest need to be limited?".  When I click on the "No" box it becomes highlighted, but the X doesn't move from the Yes box to the No box.  I've installed the latest updates... any suggestions??  Thanks!  -Gawain

[cwpete74]

I cannot 'uncheck' the 'yes' to a 'no' on the Mortgage Interest Limited Smart Worksheet. 

hmmnn,   any suggestions?

[gawainmathews]

One of the other threads in this subject (I can't recall which one) suggested entering a "0" on one of the lines relating to mortgage interest (i wish i could be more specific here!).  This allowed me to file.  Good luck!  

[DMarkM1]

There is an entry somewhere that is causing the limitation and it is usually related to entering multiple forms 1098.  Try working in the step-by-step mode.  For the best results you'll need to delete all the 1098 entries and start fresh. 

Follow these steps.

Be advised the mortgage worksheets are not part of the forms that are filed with the IRS.   Follow these steps to correct/eliminate the limitation on your mortgage interest deduction:

1. Deductions and Credits
2. I'll choose what I work on
3. Update Mortgage Interest topic
4. Delete both 1098s
5. Done
6. Update the Mortgage interest topic
7. Yes
8. Put in oldest loan first
9. Primary or Secondary Home as needed
10. None of the above
11. Enter form information from old loan
12. Continue
13. No points to deduct
14. Yes Most Recent if this is the only loan on this home; No if you have another 1098 for a loan on the same home
15. Answer the Refi questions as needed
16. Continue
17. Add a lender
18. Same steps as above for the new loan
19. Continue
20. Done
21. If there is a limitation introduced you'll be asked to review the entries to enter any payoff information
22. Now you should see the page explaining the limitation
23. You can click the help me with this link and see that if you take your loan balance at the beginning of the year box 2 old loan and add it to the balance of new loan at end of year (loan amount 1 Jan 2023) and then divide by 2.  If the average is below 750,000 that means all of your interest is deductible. 
24. In the "Your Adjustments" box enter the total interest paid for 2022 from box 1 of your 1098s
25. Continue

If you need you can re-post with specific loan (1098) information.

@cwpete74 

[sstace]

It will not allow me to change it in forms??

[MarilynG1]

If you're using TurboTax Desktop and can't change the Yes to No directly on the Tax and Interest Deduction Worksheet (Mortgage Interest Limited Smart Worksheet section), follow the steps outlined by @DMarkM1 above and use the step-by-step mode to re-enter your 1098's.

If you had multiple 1098's (or a Mortgage Credit Certificate) this may be generating the error.

Here's more info on Entering Multiple 1098's.