Not a tax expert so I have relied on TurboTax for many years. I have now wasted several days trying to figure out this issue, scouring tons of postings on this forum concerning TTax errors in computing the Mortgage Interest (MI) deduction and limitations. The “fix” in the latest "locked-Solved" posting on 7/5/21 by TurboTax Help says, “When you have more than one Form 1098 with the refinance info and both show the SAME BALANCE of the mortgage, TurboTax adds the amounts together… To avoid this, make sure that you're not reporting the same mortgage balance twice”. This is not my situation as my 1098s do not have the same balances in Box 2. I NEED A TURBOTAX EXPERT TO TELL ME EXACTLY HOW TO FIX THIS ISSUE.
In 2020, I refinanced both my 2012 home loan and 2018 second-home loan with different lenders and all four 1098s correctly have different balances in Box 2. The MI Worksheet Item 7 is ADDING together the Average Balances shown in “Home Debt after Dec 15, 2017” for the 2020 home (refinance) loan, the 2020 condo (refinance) loan, AND the original 2018 condo loan, causing it to exceed the $750,000 limit. The 2012 original home loan was handled separately.
(1) Is Item 7 supposed to be the “total sum” or the “average” of the Average Balances, and
(2) Shouldn’t Item 7 be only for the two 2020 (refi) loans since the 2018 condo loan was refinanced into the 2020 loan?
I read many posts where users have reverted to manually computing this deduction and skewing the entries in TTax. Again, I am not tax savvy which is why I purchase and rely on TurboTax. So I need a TurboTax expert on this topic to tell me (and likely many others) exactly, step-by-step, how to enter my data so TTax properly computes my MI deduction and limitation.
