topic Re: Refinanced with multiple 1098s in Get your taxes done using TurboTax

Refinanced with multiple 1098s

tomntoby — Fri, 12 Mar 2021 04:01:58 GMT

I refinanced my mortgage around June of last year with a new lender. I received three 1098s, two of which were from my original lender and the other from my new lender. One of the two from the original lender lists Principal Paid in box 10 and the other has Principal Paid and Property Taxes listed in the box. I do not know how to start or proceed. Also, I took out some cash from the refinance (burrowed more than I owed). I'm not sure how or if this affects things. Any help with getting the documents entered as needed and proceeding from there would be greatly appreciated. Thanks in advance.

Re: Refinanced with multiple 1098s

fanfare — Fri, 12 Mar 2021 04:55:02 GMT

start with the 1098 for the oldest loan

answer the questions, and see how it goes.

reply back when you run into trouble.

A lot of people do.

Re: Refinanced with multiple 1098s

tomntoby — Fri, 12 Mar 2021 05:57:55 GMT

That's what I'm confused about really. The 1098s from the same lender are for the same loan essentially. I had a loan from my original lender when I bought my house. I never refinanced or changed the loan until last year. At that time I refinanced to a new lender. Yet, I have two 1098s from the original lender. I assume I add the associated boxes from each 1098 from the original lender and submit that, but I'm not sure if that's what needs to be done.

Re: Refinanced with multiple 1098s

fanfare — Fri, 12 Mar 2021 06:48:06 GMT

what's on the second 1098 for the original loan?

Re: Refinanced with multiple 1098s

fanfare — Fri, 12 Mar 2021 06:54:09 GMT

there are issues with

cash out
points being amortized on the original loan and whether you refinanced with the same lender or a different lender.
cash out from a previous refinance.
points paid on the refinance

TurboTax tries to address these issues.

if these don't apply to you just combine all three.

Re: Refinanced with multiple 1098s

tomntoby — Fri, 12 Mar 2021 07:12:40 GMT

So the 2nd 1098 from the original loan only differs in the amount of box 1 (lower value), and the account number (not sure why they differ). I did do a cash out loan with the new lender. However there were no points.

Re: Refinanced with multiple 1098s

tomntoby — Fri, 12 Mar 2021 07:14:17 GMT

I forgot that the 2nd 1098 has Principal Only and an amount and the 1st 1098 from the same lender has both Principal Loan and Property Taxes and their amounts. in box 10

Re: Refinanced with multiple 1098s

fanfare — Fri, 12 Mar 2021 13:16:47 GMT

mortgage interest paid to lender is what is important.

if you took cash out, you can't deduct interest on that part if used for other purposes.

Re: Refinanced with multiple 1098s

tomntoby — Fri, 12 Mar 2021 14:49:34 GMT

So is my assumption correct; I just add the original lender 1098s, enter the totals as one entry, and then enter the new lender 1098 as the 2nd entry?

Re: Refinanced with multiple 1098s

fanfare — Fri, 12 Mar 2021 15:10:21 GMT

Since I can't see your 1098 documents, I can't tell you how to combine them.

Re: Refinanced with multiple 1098s

tomntoby — Fri, 12 Mar 2021 15:33:13 GMT

Wouldn't I just add the amounts in the original lender's 1098s? For example, add box 1 of the 1098 of the first 1098 from the original lender to box 1 of the other 1098 from the original lender.