I only had one lender in 2022, so that was transferred to 2023. The loan was sold to the second lender in 2023. What happened was I entered the total amount of interest on one lender because I hadn’t received the second 1098 yet (and I didn’t want to calculate this by hand), just to get an idea of what I would owe or what would be refunded. I knew the total amount of interest because I calculated it for the year by hand. Once I received the second 1098, I corrected the interest for the first lender and added the 1098 info for the second (and most recent) lender, the total interest being the same as what I entered for one lender. Once I did this, it only recognized the interest for the first lender only. The recalculation behind the scene didn’t add the interest for the second lender, so the fed taxes owed increased instead of being the same as when I entered total interest for one lender only. I checked schedule A and it confirmed interest for one lender only, not the total interest from both lenders. As suggested by a few posts, I deleted both and re-entered both and it corrected the situation to include total interest from both lenders. So there is some sort of flaw as the posts suggested. Adding an additional lender to the lender that was transferred over from 2022 didn’t recalculate behind the scene the interest paid from both. It only correctly recalculated behind the scene after deleting both and re-entering both. Entering one combined 1098 as some suggested wouldn’t be the correct solution because the IRS is sent both 1098’s and the return wouldn’t match up.
