Question

Mortgage Interest

Forum|Forum|5 years ago
February 7, 2021
2 replies
0 views

I paid $20,869 in interest in 2020 on loan #1 with a principal balance of $795,000

I refinanced loan #1 at the end of August 2020 and paid $5,553 in interest in for this loan with principal balance of $765,600.

$26,422 total interest paid on 2020, yet Turbotax calculates the mortgage deduction at 51% of the total mortgage interest paid. I understand there is a limit of $750,000 principal balance, but the calculation allowing only 51% of the total paid appears low. Why is this?

R

reber1ine

I have a similar issue, but will 2 smaller mortgages that were both refinanced during 2020. TurboTax's programming logic is screwed up because it is treating both (all 4 in my case) as being outstanding for the full year and prorating the interest deduction accordingly. I'm waiting for them to respond and fix their programing before I proceed further.

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reber1ine

I just had one of their team reply to my message that they're aware of the issue and working to fix it. So this should get included in a near-term update.

DaveF1006

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the 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.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

T

TurboUser6

Hello @DaveF1006

I have three 1098 Forms due to 2 times refinance. If I add each of thee form individually, TurboTax does not consider interest to be deductible. There is an instruction about "Multiple 1098s" and it is talking about adding all amounts from all different boxes and put that amount into TurboTax form. I did that.

Only confusion is about outstanding amount and load start date. It talks put oldest state (which is original loan starting date) and also put outstanding amount as of 01/01/2020, which would be as per first 1098 form. Can you please confirm this? Or should wait for Software Update about the same?

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PattiF

You should wait for the Software Update.

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.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"