Hi,
It doesn't make sense that the Federal tax due in the header increases significantly when second 1098 form from 2nd lender is added.
Federal tax due after entering first lender 1098 is added: $2487 (in red)
Outstanding principal is $418k
Refinanced loan in Nov '20. Added 1098 information from refinanced loan as second lender.
Federal tax due increased to $3887 (in red) moment I say Yes to "Is this loan secured by property of min?".
We only paid interest of $710 in 2020 and it was refinanced so outstanding principal is $401k. So it's little unclear why selection of Yes to the loan secured screen should increase the federal return due by $1400. Is this buggy?
We did report property tax in rental property section and the property tax is not reported in both lenders' section. I also said, no points on one of the screens before it adjusts the federal tax due field.
If I have say No - not secured then it goes down to $2487 (in red).
Very confused on this behavior. One would think by adding more interest would reduce from $2487 by few dollars. The only major difference is the reduction in outstanding principal balance to $401k in reporting 2nd 1098 entry.
Completing subsequent page that says "Is this refinanced, etc?" doesn't change Federal tax due information from $3887 to $2487.
Thanks in advance!
