Deductible Home Mortgage Interest Wks: Your calculations could not be completed. Reference code: 7-532-468

[turtax0x01]

There are some threads about this issue since 2021. But why I am still seeing this issue after 3 years?!

From previous threads on this topic, people were advised to combine 1098 forms, if there is refinance, to reduce the number of 1098 forms under 5. What is there is no refinance and there are still more than 5 1098 forms?

[MonikaK1]

If each Form 1098 is for a different property, enter the 1098 in the area of the return that applies. 

For your primary and secondary residence, enter those two Forms 1098 under Deductions and Credits. Where prompted by the program, identify which is for the primary and which is for the secondary residence.

If you have two 1098's for one home because a loan was sold to another lender, it’s not the same as a refinance, but you’ll still need to enter each 1098 separately. Follow the steps below for this situation.

Enter the original (sold) loan first:

1. Sign in to TurboTax and select Pick up where you left off or Review/Edit under Deductions & Credits.
2. Select Show more next to Your Home and Start or Revisit next to Mortgage Interest and Refinancing (Form 1098).
3. Answer Did you pay any home loans in 2023? and Continue.
4. You can either sign in to your financial institution and import your 1098 forms, or select Change how I enter my form.
5. Next, you can either upload a digital copy or Type it in myself.
6. Continue through and be sure to enter this 1098 exactly as it appears.
7. Answer the questions, and when you get to the Let's see if this is the most recent form for this loan screen, answer No to Is the 1098 you're working on now the most recent for your loan?.
8. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property?
9. Select Continue to be taken back to the Your 1098 info so far screen.

Then enter the 1098 for the new loan

1. On the Your 1098 info so far screen, select Add another 1098 and continue through to either import or enter your information manually.
2. Answer the questions accordingly and complete your 1098 info exactly as it appears on your form.
3. On the Let's see if this is the most recent form for this loan screen, answer Yes to Is the 1098 you're working on now the most recent for your loan?
4. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property? Even though the loan is with a new lender, it's still considered the original loan for this calculation.
5. When you're all done, you'll see both your forms on the Your 1098 info so far screen. You can Continue through to finish and file your return.

See this TurboTax help article for more information.

For other properties, if they are rentals, report each Form 1098 under Rental Properties along with other rental expenses for that property.

Other interest expense is only deductible if related to a Schedule C business, or if other investment property, deductions are limited to the extent that you report investment income and by passive activity limits. See this TurboTax tips article and this one for more information.