You can get the right results for both federal and state by entering the mortgage interest using the method below.
What if I have more than two 1098s?
You should combine all of the 1098s directly related to the home mortgage and enter it as one 1098. A sale of mortgages is a perfect example of when this will be the best action. The key is that all of your mortgage interest is included with your tax return. Keep all of your Forms 1098 with your tax return for the details.
Add each box that has an entry and enter it in the same form with the mortgage interest.
NOTE: The outstanding loan balance should be the actual loan balance, do not add that together from each form. Use the most recent lender's loan balance when requested for that figure.
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