Getting error: Schedule CA: _ your return has a mortgage interest adjustment which will require an update in order to ensure that the calculations are correct. Help ?

[Cynthiad66]

@treecatt

TurboTax is aware of this issue and working to resolve as soon as possible.  We do not have a fix date yet.  I suggest checking back often to see if the program is updated and you are able to e-file your return.

[dougkim80]

But how can you bill your customers when knowing of this issue and not offer a refund? Seems like a terrible business practice for all your customers, especially those who have used TT for many years. Perhaps it's time for a change...

[hkmiz]

I agree - TT should've had the option of if we wanted to pay and complete the state refund at a later date.

[hkmiz]

I took the standard deduction and still was affected by this error.

[djepson]

I have not listed anything about a first time buyer.  How do I get past his error.  WIll not let me file my taxes

[hkmiz]

HEADS UP also - I went to see if TT was fixed as it said your tax return is ready for e-filing HOWEVER check it twice..looks like TT deleted the 2nd 1098 and I was short the property mortgage interest I inputted.  My return looked lower than before and went I went over it - my 2nd 1098 was deleted!  LAAAAME on you TT!!  You don't fix a wound by adding another bandage.  I CORRECTED it to list my 2nd 1098 and back to square one..still received the mortgage error..pretty shady TBH though - CHECK YOUR RETURNS AGAIN...

[Waitingtogetthisdonealready]

It seems like this error is pretty widespread and I am so frustrated about it.
We refied mid year so we have two 1098s. TT is trying to adjust our interest down 10K on the state return and then says there’s an error. The loan is well below the fed 750 limit but maybe TT Is adding both together like a first and second instead of treating as one loan? I still don’t see why they'd adjust down for California where a larger loan is covered. 

[tracylynnsargent]

I have rechecked my returns multiple times daily and nothing has changed. If things don't change after 2/10 I might have a BF lol.  The bugs that TT has right now without any explanation is not acceptable. My son did his taxes last Monday with an accountant and had his federal return that Friday so wow to TT. 

[Geekbearinggifts]

We are using the standard deduction and paid less than $500 interest last year on a HELOC which had a roughly $10,000 balance at the end of the year, but we’re still getting this error.

[pjhamblin]

Hi,

I just received the following error when trying to file my California state return:

"Schedule CA: _ your return has a mortgage interest adjustment which will require an update in order to ensure that the calculations are correct"

Has there been any update as to when this will be fixed by Turbotax so that we can finish filing our CA returns?  Has anybody found a successful workaround?   I also did not see any link from  the Turbotax Help response, which would notify me when the update has been completed so I don't have to keep trying to refile the return.   

[Geekbearinggifts]

So, the “14 days“ from the original post and “February 10th” those who contacted TurboTax directly were told are no longer good estimates of when this will be fixed? Not cool!

This year’s software is buggier than any other version in the decades we’ve been using TurboTax. The step-by-step interview skips topics, and when there are errors the software doesn’t tell us what went wrong with your calculations or how to fix them, just says the number in a field on a form it generated is wrong. Like the child tax credit worksheet your software automatically generated even though we have no dependents, and told you so. We are not happy!

[sauspal143]

Despite what the so called experts are saying and TT employees claim, can any of them let me know:
1] How can other people file tax using other software, if they have received the updated CA forms and have fix in place why cannot TT have it in place.

2] Why TT pro-actively is not giving refunds to people stuck because of this issue (CA/NY state filing) and flash a alert while accepting payments from people trying to file state taxes.

3] Stop giving excuses and lame work arounds asking customers to fix things at their end. I work in software industry, we never ask users to fix things at their end, what is the point of developing the software and automating things when you are asking users to manipulate filing.

TT better get a grip on this or they are going to face customer retention issues for next year. 

[pjhamblin]

@Cynthiad66  - Other filers who have reached out to Turbotax support are being told that the necessary update will be completed by February 10th yet you are saying there is no fix date yet.  Who is correct?

[Netbob]

I found a nice faq on the issue and thought i would share:

Home Debt Over $750,000 for Married Filing Jointly and $375,000 for Married Filing Separately

Under tax law, you're limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you. 

If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms. 

Follow these steps to enter your mortgage info:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender).
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage insurance, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

What if I have more than two 1098s?

You should combine all of the 1098s directly related to the refinance and enter it as one 1098.  An example of this is if you refinanced two loans into one loan. Any 1098s not directly related to the refinance should get entered separately.

What if I paid points?

Points on Loans Paid Off in 2021: Enter the points on your 1098 you have started and mark you paid off the loan when promoted.

Points on Loans on New Loans: You'll want to enter a separate 1098 to cover these points paid. When prompted, enter 0.00 for Boxes 1, 2, 5, and the Property (real estate) taxes box, and place a check mark in Box 7, as you’ve already entered the details on your first 1098. For Box 3, add the date in 2021 when the loan originated.

Hope this helps as it resolved my mortgage interest issue in CA.

Mike

[sauspal143]

@Netbob hope the TT product owner(s) are watching your post and they understand how to automate the entire use case in TT so that we don't have to do it manually. Thanks for sharing the steps.