Deductions & credits

TurboTax will take your entries for your mortgage deductions (Forms 1098) and other applicable Itemized deductions and determine whether it is better for you to itemize or take the standard deduction.

 ‌If TurboTax determines it is better for you to take the standard deduction than your itemized deductions including your information from your Forms 1098 were less than the standard deduction.

In order for TurboTax to properly determine your mortgage deductions, you must answer the questions in TurboTax correctly for TurboTax to recognize that one loan is a refinance and the other was the original loan. To do this:

Enter the original loan first

1. Go to the screen that says asks if you paid a home loan in 2024, answer "Yes".
2. Enter your Form 1098 information from your original mortgage.
3. It will ask, "Is this 1098 the most recent for your loan?", Answer No." 
4. Answer the remaining questions regarding your original loan

Enter the 1098 for the new loan second:

1. On the "Your 1098 summary screen", select "Add a new 1098".
2. Enter the details from your 1098 for the refinanced loan.
3. It will ask "Is this 1098 the most recent for this loan?"  Answer, "Yes". This lets TurboTax know that this is the most recent loan balance to use for your deduction.
4. On the "Let's get some details about this loan" screen, make sure to  answer "This loan is neither of these".
5. When you see "Thanks, we got all your mortgage info" select Continue.
6. When you're all done, you'll see both of your forms on the "Your 1098 Summary" screen. 
7. You can select Done to finish.

Enter your Form 1098 from your original loan first.  Answer "No" to "Is this the most recent for your loan?"

Click here for How Does Refinancing a Home Affect My Taxes?"

Click here for How Do I Handle Multiple 1098's?

{Edited 02/17/2025|412:10 PM PST}

@jsmchi