This may be a work around if you have multiple 1098s. I suggest you enter each one separately.
If a Mortgage is paid off, or re-financed you should:
- Enter $1 in Box 2 Outstanding Mortgage principal for the Refinanced / Paid off mortgage
- Every 1098 should be posted.
- The final 1098 for that property will have the full loan amount as reflected in Box 2.
- If you have multiple properties, you should follow this procedure for each property.
This will properly record every 1098, and avoid any issue with mortgage limitations.
When you have more than one Form 1098 with the refinance info and both show the same balance of the mortgage, TurboTax adds the amounts together. And that may lead to a limitation of the deduction, because the balance is then overstated. To avoid this, make sure that you're not reporting the same mortgage balance twice.
If your combined home debt is under $750,000 ($750,000 for married filing jointly and $375,000 for married filing separately), there's nothing new for you to do in 2020. Enter each 1098 as you normally would.
@jkert25
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