Hello,
I have 1098 form from 2 different lenders because I refinanced my original loan. The amount of mortgage interest on the original loan is approx. 23K, while on the refinanced loan is approx. 4K.
When I only enter the details of the lender from the original loan, TurboTax is applying a deduction of 23 K, but as soon as I enter the 2nd lender and select 'Box 7 is checked', the Federal refund reduces significantly. The deduction applied is only approx. 12 K. Does refinancing affect my ability to claim deduction on mortgage interest?
I was expecting to claim 23K + 4K (total 27K), but looks like that's not the case.
Can someone please explain why this could be happening? What is the general suggestion here? Should I just enter the original loan? That at least allows me to claim 23 K.
