In answer to your questions:
a) How do you make the adjustment for the amount above the original principal balance?
You need to add together the amounts in box 1 from each 1098 form as well as box 5 and the property taxes that you paid.
b) if 2,3,7, and 11 use the original mortgage, than it won't be identified as having been refinanced - is that correct?
Yes, that is correct.
Step-by-step
If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms.
Follow these steps to enter your mortgage information:
- Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
- Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
- 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.)
- Add the property tax paid from each form and enter it in the Property (real estate) taxes box.
Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.
@mpinne
