"Home Mortgage Interest Worksheet" errors

[Ilikeowls]

Can I fix it for you? It's easy and my rates are very reasonable.

[jmh_1990]

I'm having the same issue. Have more than 1 mortgage. One mortgage is <$400k and I paid $12k of interest, the other $7k. It's telling me my deduction is $8k... I'm positive that's wrong but it won't let me fix it...

[jmh_1990]

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^how do I do that?

[Cynthiad66]

Please try this:

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file. 

[LinaJ2020]

Here is the update and workaround:

If you have more than one 1098 form, I will recommend you to combine all 1098 forms and enter as one. I am attaching a TurboTax link for the instructions how to do claim your mortgage interests.  Click here:

Multiple Form 1098s

For tax years prior to 2018, your mortgage interest deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status). Beginning in 2018, this limit is lowered to $750,000.  For more information about the mortgage interest deductions, click here: Mortgage Interest deduction

@jmh_1990

[jmh_1990]

Thank you for the reply/for the time. It is not a refi. It is 2 mortgages, on 2 properties. I just bought a new home and moved in November 2020, and am trying to sell our old home but have not been able to sell it yet. I believe the calculator is clearly incorrect. Possible it has not contemplated this scenario (a late year move, multiple 1098s); it is averaging my mortgage balances. Again, in this case I am paying ~$19k of mortgage interest, and I think I should be able to deduct ~$15k, but it is only allowing me to deduct $8k, and I cannot fix it. The $8k is 100% wrong; one one mortgage alone that's <$400k balance I'm paying $12k of interest... 

[jmh_1990]

Got it ok... I thought about doing this but it just seems like a pretty "hack" workaround, and could easily have issues with the IRS as they are going to see three 1098s with different balances, I'm basically making up a "combined" 1098 that doesn't actually reflect any tax documents I've received. Don't want to create issues for myself down the road.

[teolsen]

The program does not let you change line 2 to "0", it requires a namer to be entered, secondly it's not calculating the property tax correctly, my property taxes exceeded the $10k limit, TT is deducting the balance over the $10k, not the $10k

[FOLEYO]

Similar problem: Mortgage paid off during year, deductible interest below threshhold amount so Form 1098 was not issued by lender.  TurboTax Desktop edition would not accept $$ values for Beginning Principal, Principal Paid, Deductible Interest, etc.  Completed rest of return to point of E-Filing but software would not e-file unless Principal values were posted.  Finally resolved problem by opening the Mortgage Interest Worksheet and overriding each field (right clicking for popup menu or CTRL+D) and manually posting amounts.