I refinanced and have two 1098 forms

Forum|Forum|7 years ago
June 6, 2019
12 replies
2 views

I have two 1098 forms, I don't know which is which and I don't know where to put them

TurboTax Premier Online

Best answer by MinhT1

If you have refinanced your home, it is normal that you have received two forms 1098, one from each loan.

You'll need to enter both 1098 forms on your tax return.

In TurboTax, to enter these forms 1098, please follow these steps:

Click on Federal Taxes
Click on Deductions & Credits
Under All Tax breaks, locate the section Your Home and click on Show more
Click Start next to Mortgage Interest, Refinancing, and Insurance (see screenshot 1)
Follow the interview and enter your first form 1098
Click Continue at the end of the interview
You will be brought back to the Mortgage deduction Summary page
Click on Add a Lender (see screenshot 2)
Follow the interview and enter your second form 1098.

Show previous replies

Tomographic

Level 2

I added both together and entered that amount

si29xnm

Level 3

I’m going to leave a 1-star review on Amazon.com for TurboTax given this unacceptable problem that has not been fixed for years. I suggest others do the same.

bkharden

Level 2

I am 100% sure I filed owing way more than necessary with TT for 2019 for this exact reason. This is a simple problem but TT fails here. Its very common. I now have two scenarios. 1) sell a home over the limit, but a home over the limit. Now its even a refi for the dame home. To see the problem all you need to do is add both, then remove one, and you may see you are better off claiming the bigger one, not claiming both on interest. I gave up last year and filed anyway assuming the tax law had me for some reason. I sold a home, purchased a home. Both over 750k (California that's a 2 bedroom apartment). I had one home for 9 months, the second was double the cost for 3. If I removed the 3 month I got more back. But it was close to half the interest of the first. Why?

I saved a few bucks with TurboTax and I believe it cost me 100X. Please fix this. I have the same issue this year. This year, all I did was refi. I purchased in aug 2019. Refi in Feb 2020. If I enter just the refi (march to dec) then I get back tons, If I add the smaller one from jan to feb, then I owe big time. I went to the forms and the answers are WRONG. I did the wizard questions 3 times now. At least I know when the number should go up or down. But so mad I filed last year and have to fix that. Big $$ lost.

FIX PLEASE for the sake of all

doT

Level 3

Here are my thoughts on this since I found this last year and was about to pay thousands more in taxes than I needed to. I emailed TT tech support and called multiple times and was told it would be fixed last year. It never was.....fast forward to this year and it still isn't fixed and it sounds like TT support is basically telling everyone to go pound sand.

I think everyone on this thread should explain the problem in an email and then send that email off to as many news sites as you can. One thing that will get TT off their a$# is bad publicity. If everyone does this a few times a day to lots of new stations, someone will pick it up. If you refinanced this year (LOTS of people refinanced this year) and your mortgage was more than $375k, you are overpaying using TT. I guarantee that some news station will pick this up and run with it. You could also just blast it on social media while you are at it.

In the meantime....I'm not sure how class action lawsuits work but this sounds like it could be one. They know it's a problem and have done nothing to fix it which in turn is causing customers money. Their own people (I think it's TT employees) on this site are giving out bogus workarounds that could get people in trouble if they are audited.

Just my thoughts....I won't be using TT moving forward after this year due to this and I'm sure lots of others won't either if they found out what TT did and how they are not informing people of their mistake.

taxCLUE2

Level 2

I actually refinanced twice and both time the loans got sold following closing. And the first time was HELOC consolidation, so got 6 lenders.

Don't know if this is new instructions but the PC version says to add them all up enter it once. I guess its too hard for the software guys to do it for you. ¯\_(ツ)_/¯

If they don't know how to do it then should not lobby congress not to simplify the tax code.

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What if I have multiple 1098s related to a refinance done in 2020?

Hold up! Follow these instructions if you refinanced last year and your new loan amount is $375,000 or more ($250,000 if Married Filing Separately).

If you refinanced last year, you will have a 1098 from your previous lender and one from the lender you refinanced with. You'll need both forms to enter the details for this screen.

1. Gather all of your 1098 forms related to your refinance, e.g. the form from your original lender and the form from your new lender.
2. Grab a calculator and add the Mortgage Interest Received (Box 1) amount from each form and enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the box 5 Mortgage Insurance Premium from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren't required to pay mortgage insurance premiums, these boxes will be blank on your forms and you won't enter anything here.)
4. Add the property tax paid from each form and enter it here next to Property (real estate) taxes paid.
5. Enter the remaining items from the 1098 loan that was paid off in 2020 for the Outstanding Mortgage Principal (Box 2), Mortgage Origination Date (Box 3), and the checkbox on box 7 (address of property securing the mortgage)

It's uncommon but you could have additional 1098 forms, for example, you refinanced multiple times or your loan was sold by your lender. If you do, follow the same steps but be sure to include info from all of your forms in your calculations for steps 2-4.

Once you're done here, hold on to your forms for when we ask about any points you paid when you refinanced. Points are a fee you pay to reduce your loan's interest rate. If you paid points, you'll see an amount in box 6 of the 1098 for your refinance.