topic How to correctly enter multiple 1098 forms in Get your taxes done using TurboTax

How to correctly enter multiple 1098 forms

fangland — Sat, 27 Feb 2021 05:17:23 GMT

I refinanced my Chase mortgage loan in 2020 with Owning Corp, and then that loan was immediately transferred to Arvest Central Mortgage (ACM). When I refinanced with Owning, I paid a partial point. I was sent 3 1098 forms. I'm having a hard time entering everything correctly. Turbotax is prompting me if I paid off the loan for the Owning refinance, although it should be asking me about the payoff information for Chase. I'm clearly not entering information correctly and misunderstanding the questions being asked. Does anyone have advice on this?

1. Is Chase considered the original loan I used to buy the home, or is it the refinanced loan?

2. Is the Owning loan considered a new loan?

3. Since ACM acquired the loan, do I also put that I paid points?

4. Is the ACM loan considered the original loan, or refinanced loan? Neither seem correct
5. When asked about outstanding loan balance, I input the payoff amount for Chase, and put 0 for Owning and ACM but it is telling my that a value for outstanding loan balance is missing.

Re: How to correctly enter multiple 1098 forms

Cynthiad66 — Tue, 02 Mar 2021 17:57:59 GMT

Chase is the original loan unless there was another loan previous to the chase loan.

Owing is refinanced and ACM is a refinance. If you paid points then claim them.

There is a known problem with Home Mortgage Deduction. TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades. We have not been given an expected date for the fix yet. Please check back often to see if you can file your return.

In the meantime, you can try this work around. You did not provide the details of your Mortgage situation and therefore I am giving you a general work around that might help. Please try this.

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file.

If this does not work, contact us again and give additional details about the types of refinance or cash out loan that you have this year then we will provide additional assistance.

To prevent taxpayers from claiming a deduction for luxurious homes, the law limits the deduction to the interest that you pay on up to $750,000 in total mortgage balances. This $750,000 limitation applies to the total of both mortgages.

Re: How to correctly enter multiple 1098 forms

fangland — Tue, 02 Mar 2021 18:16:43 GMT

@Cynthiad66 Thank you for your reply. this is the timeline of our mortgage loan history. Right now the loan remainder is under $750k.

Acquired the original loan to buy the house through Guaranteed Rate Affinity in 2018

Loan was sold to chase in 2018

Refinanced in 2020 with Owning and paid partial point to do so.

Loan transferred almost immediately to Arvest Central Mortgage in 2020.