File 2 1098 form with turbotax because of mortgage refinance

Forum|Forum|4 years ago
March 6, 2022
4 replies
48 views

In 2021 I refinance my mortgage so I had 2 1098 forms. The total mortgage it more than 750, 000 and the house was purchased in 2020.

Based on following link I should merge two 1098 forms to one:

https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-my-home-debt/00/1897136#:~:text=When%20you%20have%20more%20than,the%20balance%20is%20then%20overstated.

However after that it has a few questions, for example:

When you refinance or your lender sells your loan, you’ll get 1098s for the original and the new loan. When this happens, we need to know which is the most recent.
Is the 1098 you’re working on now the most recent for your loan? (If you only have one 1098, select Yes.)

1) Should I reply Yes or NO?

2) For following questions, should I treat them as original 1098 or the refinanced 1098 form?

3) Or I should enter 2 1098 form in turbotax in my case?

TurboTax Premier Online

Best answer by DMarkM1

You will enter two 1098's.

Begin by "Revisiting" the "Mortgage Interest" topic in the "Deductions" tab to delete all the 1098's you have entered to get a clean slate.
Then "Revisit" the topic and add your original 1098
Answer "No" this is not the most recent loan
"Yes" it is the original loan.
Once that one is entered "Add a 1098"
Enter the information from your current lender.
Answer "Yes" it is the most recent loan
"No" it is not the original loan.
Select it is a refinance
Answer the "cash out" question as applicable.
"Done"
"Review" the entries as requested to enter the pay off information as needed
Final principle amount at payoff (which should be the box 2 amount from your current lender)
Payoff date (which should be the Box 3 date from your current lender)
Ending Balance for the current loan on 31 Dec 2021 (technically 1 Jan 2022)
No pay off date since it is current

DMarkM1Answer

Alumni - Intuit

You will enter two 1098's.

Begin by "Revisiting" the "Mortgage Interest" topic in the "Deductions" tab to delete all the 1098's you have entered to get a clean slate.
Then "Revisit" the topic and add your original 1098
Answer "No" this is not the most recent loan
"Yes" it is the original loan.
Once that one is entered "Add a 1098"
Enter the information from your current lender.
Answer "Yes" it is the most recent loan
"No" it is not the original loan.
Select it is a refinance
Answer the "cash out" question as applicable.
"Done"
"Review" the entries as requested to enter the pay off information as needed
Final principle amount at payoff (which should be the box 2 amount from your current lender)
Payoff date (which should be the Box 3 date from your current lender)
Ending Balance for the current loan on 31 Dec 2021 (technically 1 Jan 2022)
No pay off date since it is current

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

CD955

Level 2

I refinanced in Jun 2021. I have 2 1098s. I input them both according to the instructions. There's no option to denote the 2nd 1098 is a refinance.

The options are:

This is a new loan on which I paid points in 2021

I bought or improved my main home with this loan in 2021

I'm spreading the points over the life

I have no points

How do I indicate this loan is a refinance?

DMarkM1

Alumni - Intuit

Keep going. There is question after the one you mention that asked if the loan was the "original loan." You select "No" to that question and you will be asked the refinance questions.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

panxj

Level 2

For your original question, please see the answer here:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-my-1098-deduction-disappears-by-answering-when-you-refinance-or-your-lender-sells-your-loan/01/2731982/highlight/true#M262499