I entered Forms1098 from refinance together, company 2 and 3 by adding line 1. They have the same outstanding mortgage principal but not the same mortgage origination date. I used the origination date of company 3 whom I am paying the mortgage to now.
Company's Form 1, I inputted line 1, mortgage interest and inputted line 3 date 05/04/2017. Box 2 on form has an outstanding mortgage principal. Turbo tax created the Deductible Home Mortgage Interest Worksheet and I believe it's adding two ending balances from the original home loan and the refinance as one complete loan as 801,000. This number appears as average balance of all home acquisition debt. I believe the amount should be under 400,000.
On the Form 1098, box 2 of company 1, I believe the outstanding mortgage principal should have read 0 since the refinance paid off the loan. Should I add zero on this field in Turbo Tax?
The Deductible Home Mortgage Interest Worksheet are not created if I only use the refinance information using the amount I paid in taxes and principal (company 1,2,&3) for the entire year. Using company 3 information on Form 1098.
California Adjustments CA 540 under column C additions. The worksheet Turbo Tax added -1 under line 8a Home mortgage interest and points reported to your Federal Form 1098. I inputted no points were paid.
It also decreases by a dollar my itemized deductions.
Why is this showing up on tax forms?
I believe this is due to how I am reporting the 1098 forms.
How should I report 1098 so it shows correctly on the worksheets?
