Yes, this is a common error when there are two 1098's issued for the same mortgage. When these are entered separately, the principles are combined. When this happens, the $750K mortgage limitation amount is exceeded, thus your mortgage interest is reduced.
A best practice is to combine the mortgage statements into one. Here are the steps.
- Add the Interest (Box 1) from both forms together.
- Add the property taxes (Box 10) together.
- Use the highest Outstanding Principal (Box 2) reported between the two.
- Enter this as a single "consolidated" 1098 from PennyMac. This prevents the software from thinking you have two different mortgages
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
