It depends. Box 7 is checked if the mailing address that is on the Form 1098 is the same as the address of the property that is securing the home mortgage loan. That shouldn't have anything to do with the difference in the tax owed to California. I would combine all 1098's into one and leave Box 7 unchecked. When you combine, put the most current mortgage loan amount that is still outstanding. Combine both interest rates into the one statement.
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