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Multiple 1098s after refinance
I'm in a similar situation as some of the folks here with multiple 1098s but my situation is slightly different. I've read a few posts but it appears some of them isn't cleared to me. I read this post https://ttlc.intuit.com/community/taxes/discussion/multiple-1098-mortgage-interest-due-to-refinance/...
Also it appears the Turbotax link to help people with multiple 1098s situation has been removed. It's no longer found on the page. This link is broken https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-...
Anyway, I completed my refinance in December of 2021 and got two 1098s for 2021 through the same lender (I refinanced with the same lender). The account number is different so I guess it sent me two 1098s. So the first 1098 form has a huge interest while the second 1098 is a lot smaller due to the timing of the refinance.
Not knowing about combining the two 1098s, I added them separately as follows and then answer them based on the original loan and the refinanced loan.
Can someone help me determine if what I did is the correct way to do it since the guide in previous year from Turbotax has been removed which made me think it's not applicable for 2021 tax anymore?
Sorry this post is a bit long but I'm hoping it can also help someone like me in the future since it's based on the steps I did.
This is a primary home.
First loan 1098 (I guess original loan)
- Entered all boxes (1, 2, 3) as it appeared in my first 1098.
- Box 8 has my address so the loan is secured by property. Box 8 has my address. Box 7 is NOT checked.
- I have no points to deduct for this loan (for the question "tell us about any points paid to" my lender)
- the point was deducted when I bought the house a few years ago
- Is the 1098 you're working on now the most recent for your loan?
- I chose No (because I will enter the second 1098 after this one)
- Is this the original loan you used to buy your property?
- I chose Yes
Second loan 1098 - same lender so I had to add a dash next to the name to distinguish from first 1098 and second 1098
Here is what I entered as I added the second 1098
- primary home
- Do any of these situations apply?
- None of the above
- I entered all the boxes (1, 2, and 3) as it appeared on my second 1098. Box 8 has my address. Box 7 is NOT checked.
- Box 8 has my address so the loan is secured by property.
- Tell us about any points paid to my lender
- My answer >> I have no points to deduct for this loan
- Now when Turbotax asks "Is the 1098 you're working on now the most recent for your loan? (if you only have one 1098, select yes"
- I Chose Yes
- Because of my answer above, Turbotax asks me a few more questions
- Is this the original loan you used to buy the property?
- I chose No
- Is this loan a home equity line of credit (HELOC) or a refinance of a previous loan?
- Yes
- Did you take cash out when you got this loan?
- No (this is based on a guide below this stating "Select No if you only used the loan to refinance an existing loan")
- Is this the original loan you used to buy the property?
After that Turbotax goes back to the Home loan deduction summary which I can either add another 1098 or click "Done". When I click Done, it asks me a few more questions
- When did you buy the home with the loan from the first lender? (which is the same lender)
- I put the date that was in box 3 of the first 1098
- When did you buy the home with the loan from the second lender? (it's the same lender, just trying to match what I entered -- that's why I mentioned I had to add a dash to know which is which)
- I put the date that was in box 3 of the second 1098, which was around December 2021
- So it appears after that, Turbotax next page asks me to fill in this table
What was the outstanding loan balance on January 1st 2022? If you paid this off in 2021 enter the balance on the day you paid it off | When did you make your final payment? If you did not pay this off in 2021, leave this blank | |
Lender (same but for first 1098) | 810,000 (amount in first mortgage before it's paid off by second mortgage) | I entered the date that was paid off based on my mortgage transaction, around December 2021 |
Lender (same but for second 1098) | 812,000 (same as box 2 of second 1098) | I left Blank |
Is this the correct way to do this in 2021? As I mentioned earlier that Turbotax removed this page https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-... so I'm wondering if all the previous information is also outdated.
Appreciate your help!