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For individuals with more than one 1098.
Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause the Home Mortgage Interest to be incorrectly limited.
If you're experiencing the issue above, please go here to receive email notifications when any updates related to this issue become available.
The fix here has been outstanding for a while. Background, we refinanced twice in 2020 and the 2nd re-fi was late in November, so our first payment on the new loan was 1.1.21.
02.04.20 - 1st call in was with an agent that showed me how to get past the smart check. After she ended the call, I attempted to file electronically. The software I think re-runs the smart check at that point and the error was still present. I pretty much knew it was a software error, but just in case, I checked with my mortgage firm (one of our banks) and they confirmed that a blank was appropriate for the outstanding loan balance on the 1098. Thinking that an update was coming, would open up Turbotax once a week and find the same error.
03.19.20 - 2nd call in I was connected with Theresa. Thorough, thorough, thorough woman who listed. Her only request of me was patience. She found this thread and AlanT222's link to receiving an email when the update has been applied. So we wait. But, thanks to Theresa's listening skills, knowledge of the support system and AlanT222's advice, I am comforted that this will get fixed.
Suggestion: why doesn't Turbotax a) number it's error messages, b) identify them to the turbotax fields involved and c) provide a link to current status and/or instruction? That would seem a less expensive approach?
Is there a fix of the problem? I'm experiencing the same problem
There is a known problem with Home Mortgage Deduction. TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades. Also, remember that TurboTax must wait for a finalized form the IRS before we can complete programming on this side. We have not been given an expected date for the fix yet. Please check back often to see if you can file your return.
Is this fixed?
As of today 04/13/2021, I am facing the same issue.
I received multiple 1098s due to refinance and the interest did not deduct correctly.
This may be a work around if you have multiple 1098s. I suggest you enter each one separately.
If a Mortgage is paid off, or re-financed you should:
This will properly record every 1098, and avoid any issue with mortgage limitations.
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. And that may lead to a limitation of the deduction, because the balance is then overstated. To avoid this, make sure that you're not reporting the same mortgage balance twice.
If your combined home debt is under $750,000 ($750,000 for married filing jointly and $375,000 for married filing separately), there's nothing new for you to do in 2020. Enter each 1098 as you normally would.
@Cynthiad66 since you mentioned TurboTax must wait for IRS for the new rules. While waiting, can you fix those existing issues. I assume home mortgage deduction rule hasn't changed in 2020, or has it?
@JohnB5677 if I put $1 in the first two lenders (paid off already during refinance), and only real number in the third lender, I see $1 somehow got transferred to the State (CA) section as $1 Mortgage Interest Adjustment. What should be the real number in the CA mortgage interest adjustment?
Does anyone know when will this issue be fixed? The filing deadline is coming up soon and I am sure many of us is trying to finished filing.
Looks like it is still no fix..As of May 3!
Actually there is a fix. It is combining your original and refinanced 1098's. Use the original loan balance in the original 1098 and then combine the mortgage interest amounts, mortgage insurance premiums, and property tax amounts if reported in your forms.
Are you suggesting instead of inputting the three individual 1098s from the three lenders, I should input a fake 1098 with all the information properly combined from the three 1098s? Turbotax can then work properly.
Yes. It is a workaround that has worked for the most part. Make sure Box 2 only has current outstanding loan balance. Do Not add those together.
Thanks, Cynthia. Hope that work around is acceptable to IRS if they are not counting # of 1098's entered. In Schedule A all they care is the final mortgage amount.
Does anyone know if this issue is fixed yet, its barely a week before tax filing deadline. The fix could be as simple as taking the least of the Box 2 of all 1098's, if that number > 750k divide it by that amount and multiply that decimal with addition of all box 1 amounts, not sure why it should take so much time to fix it.
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