My loan was sold to a different mortgage servicer in Nov 2022 so I received two 1098s. First 1098: box 2 outstanding mortgage: $229,000. Second 1098: box 2 outstanding mortgage: $189,000. I read many questions and solutions in TT and they were for previous tax year and 2022 TT asked me more questions. I tried different answers and TT still think that the 2nd 1098 was a home equity line of credit (HELOC) or refinance so I didn’t get deductions for the mortgage interest from the 2nd 1098.
First 1098:
- Box 2: I entered $229,000.
- I paid points when I refinance this loan so I am spreading points over the life of my loan and get deduction
- Is the 1098 you’re working on now the most recent of your loan? Answer Yes, or No?
- Is this loan is a HELOC? Is this loan a refinance of a previous loan. My answer: 'Neither'
Second 1098:
- Box 2: I entered $189,000
- Tell us about any points paid. I have no points
- Is the 1098 you’re working on now the most recent of your loan? My Answer ‘Yes’
- a/ Is this loan HELOC b/ This loan is a refinance of a previous loan c/ This loan is neither of these. *** When I selected ‘This loan is neither of these’ TT removed the credits that was previously given to the 2nd mortgage interest
- How to answer the following questions
Q.1 Have you used the money from this loan exclusively on this home?
This applies to the entire lifespan of the loan, and includes improvements or mortgage payments made on the property that secure the loan.
- Yes, I’ve used this loan only on the home I took it out on
- No, I used some or all of this loan on a diff home
Q.2 Since you’ve used money from this loan for things not related to the property it’s secured by, you can’t deduct ..
Q.3 What is the balance of your loan on 12/31/2022
Q.4 In both 1098 worksheet, TT asked ‘was this loan a result of a refinancing a previous loan’ and gave me errors
Q.5 1st 1098 was a refinance so I still need to spread the points for the next 12 yrs. I hope the 2nd 1098 won’t remove this deduction in 2023
Thank you so much for your help!
