Here is a possible solution for you to continue to file your tax return. 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 or refinance 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 if your outstanding principal loan balance is below the maximum of $750,000 (or $1M for grandfathered debt incurred on or before December 15, 2017). 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 entry. (As of January 1, or the first day the loan was taken out in 2021)
Any additional debt not used to buy, build, or substantially improve a qualified home isn't home acquisition debt. TurboTax will calculate the amount of allowed mortgage interest deduction based on your entry or you can choose to make the entries yourself.
- To review the information and worksheets you can use this link: IRS Publication 936, page 12 (you can make the appropriate entries by selecting 'I'll enter it myself'
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