Can adding a 1098 from another mortgage bank lower my deductible interest? How?

I recall, the year I had 2 banks, I double clicked the cell to enter mortgage interest and a small form came up letting me itemize. The total flowed back to the cell for the interest deduction. I could have entered as many as I wanted there.

You are right that amount of interest that is deductible shouldn't have gone down.

If you entered them in that order, I am not sure how it dropped.

Nevertheless I would look at the information related to the 1098. What I mean is that every time I enter information from a W-2, 1099, or 1098; Turbo Tax always have a series of questions related to that new piece of data.

In a year where you did a refinance it is possible that how you answered the questions dissociated Mortgage A from the home. I am assuming based on your screen capture this isn't investment property. You have to make sure that Turbo Tax associates these mortgages with your home.

When there is a refinance then how how you handle points changes. Depending on if there was a cash out during the refinance, then some of the interest might not be deductible.

Here is what I would do.

• Tell Turbo Tax you want to edit the data for all the 1098s. Reread and re-answer the questions.
• You could also just remove them and reenter the data and answer the questions. You might not want to do this with the existing mortgage, because more data might be associated with it if the basic data was imported from last years form.
• Change from step-by-step view to forms view and see if you can follow the calculation, to see where the disconnect it.

It is unlikely that there is a software error with this. I expect that a number a related question was answered in a unexpected way.