When your mortgage is sold, resulting in multiple 1098 forms, you should enter both into TurboTax to ensure all mortgage interest is reported. Here's a concise summary:
- Enter Both Forms: Include both 1098 forms to report all mortgage interest.
- Points Paid: If you only paid points to the original lender, enter them with the first 1098 and do not duplicate the points on the second 1098
TurboTax's instructions on entering multiple 1098 form
Here are the steps to enter in TruboTax:
For a loan that was sold
When a loan is sold to another lender, it’s not the same as a refinance, but you’ll still need to enter each 1098 separately.
Enter the original (sold) loan first
- Sign into TurboTax for link in Step 2 to work:
- Go to the Did you pay any home loans in 2024? screen, and select Yes.
- Follow the on-screen instructions to enter the details of your original loan.
- On the Is this 1098 the most recent for your loan? screen, select No.
- Answer the remaining on-screen questions about the details of your original loan.
Then enter the 1098 for the new loan
- On the Your 1098 summary screen, select Add a new 1098.
- Follow the on-screen instructions to enter the details of your additional 1098.
- On the Is this 1098 the most recent for this loan screen, answer Yes. This lets us know that we have the most recent loan balance to use for your deduction.
- Answer the remaining on-screen questions about the details of your original loan.
- When you're all done, you'll see both of your forms on the Your 1098 summary screen. You can select Done to finish and file your return.
