Found this the other day. When you go to enter a 1098, at the bottom there is a hyperlink "Multiple 1098s related to a Refinance done in 2020". Opening it up gives these instructions:
Hold up! Follow these instructions if you refinanced last year and your new loan amount is $375,000 or more ($250,000 if Married Filing Seperate).
If you refinanced last year, you'll have a 1098 from your previous lender and one from the lender you refinanced with. You'll need both forms to enter the details for this screen.
1. Gather all of your 1098 forms related to your refinance, e.g. the form from your original lender and the form from your new lender.
2. Grab a calculator and add the box 1 amount from each form and enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren't required to pay mortgage interest, these boxes will be blank on your forms and you won't enter anything here.)
4. Add the property tax paid from each form and enter it here next to Property (real estate) taxes paid.
Next, finish adding info for boxes 2, 3, 7, and 11 using the 1098 for the original loan.
Haven't tried this yet but seems like it should be the solution. Really whish it wasn't hidden at the bottom of the page like this.
It's uncommon but you could have additional 1098 forms, for example, you refinanced multiple times or your loan was sold by your lender. If you do, follow the same steps but be sure to include info from all of your forms in your calculations for steps 2-4.
Once you're done here, hold on to your forms for when we ask about any points you paid when you refinanced. Points are a fee you pay to reduce your loan's interest rate. If you paid points, you'll see an amount in box 6 of the 1098 for your refinance.
