Deductible Home Mortgage Worksheet

[vanlieremead]

Hi!

Question on the Deductible Home Mortgage Worksheet and filing.  I am running the latest version of TurboTax Products Tax Year 2021.  There is a marker on it that states that the form is not yet final for 2 or more mortgages and limited mortgage interest with expected date of 2/17/22 as being final.  I refinanced last year which is why I think the program thinks I had 2 mortgages.  I did but not concurrently - maybe that makes a difference?

Anyway, the `expected` comment bothers me and I wish to file now.  Will it matter if I file now?  I can't imaging Turbo Tax would release a software packaged which would result in an audible wrong answer.  This worksheet isn't submitted anyway to my knowledge.

Does anyone have any idea to this?  Thank you!

[DianeW777]

Perhaps. You can get the right results for both federal and state by entering the mortgage interest using the method below.

What if I have more than two 1098s?

You should combine all of the 1098s directly related to the home mortgage and enter it as one 1098.  A sale or refinance of mortgages is a perfect example of when this will be the best action. The key is that all of your mortgage interest is included with your tax return if your outstanding principal loan balance is below the maximum of $750,000 (or $1M for grandfathered debt incurred on or before December 15, 2017).  Keep all of your Forms 1098 with your tax return for the details.

Add each box that has an entry and enter it in the same form with the mortgage interest.

NOTE:  The outstanding loan balance should be the actual loan balance, do not add that together from each form.  Use the most recent lender's loan balance when requested for that entry. 

• What do I do if I have multiple 1098s from refinancing my home debt?
• How do I handle multiple 1098 mortgage forms?
• Where do I enter my 1098 mortgage interest statement?

[vanlieremead]

Thank you for the prompt response.  You said, "perhaps" and I think that is accurate.  The refi had points.  The mortgage origination date would be incorrect in either case (entered on actual date, would look strange or entered for Jan 1st.)  I think 'll just keep things as they are.

[vanlieremead · Accepted solution]

The issue cleared itself.  The "offending" worksheet disappeared.  Turbo Tax put out a new download yesterday. Who knows?  

Combining wasn't something I wanted to do.  The second had points and there were questions around origination dates and payoffs.  I eventually used the software as it was intended and things came out fine. 

[Marlame]

I'm glad I'm not the only one that is confused about this topic. I finished my federal and state and unfortunately filed yesterday, February 6. I refinanced a pre 2017 mortgage in November 2021. I diligently completed and answered all the questions. It wasn't a big deal on the Federal since I could only take the standard deduction, but then I noticed that on the California State side it was calculating the original and the refi'd loan and apparently concluded that we exceeded the $750K which was not the case such that my California state refund was $47 instead of $627. I called TT and was very disappointed in the response: The agent said that he couldn't give me tax advice 'per his supervisor" and emailed me copies of the Federal instructions on home mortgage interest! I wasn't asking or tax advice, I was asking why TT program inaccurately handles this topic and is there a fix--very disappointing. So now I need to file an amended state return at some point. And can someone tell me exactly what the "offending form" was that TT took out? I updated yesterday upon install and I'm not prompted for an update.

[Marlame]

I see TT "solved" this issue 7 days ago. Too bad the agent I talked to yesterday, Feb 6, didn't know a thing about this solution and instead gave me an email link to the Federal instructions on home mortgage interest AND told me I should buy TTs live help version. In fairness I could tell it was a supervisor behind him telling me this. Very disappointed in TT and I've been using their software for decades! My returns have been accepted by Fed and State of California. Can I now file an amended return??

[Marlame]

What was the title of the "offending" worksheet?

[Marlame]

When I opened up the link "What do I do if I have 2 1098s from refinancing" it stated, "Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan."  I took out a little cash for home improvement  but in any event the loan balances between the original and the refi loan are not the same. Shouldn't I use the new loan balance from the refi'd loan??