topic How to report Form 1098 with different amounts and dates. in Get your taxes done using TurboTax

How to report Form 1098 with different amounts and dates.

PSBMANLIJZM — Tue, 30 Mar 2021 20:08:38 GMT

I received 3 Mortgage Interest Statements Form 1098 due to refinancing from 3 different finance companies. How do I report this on Turbo tax, all of the forms have a different dates on line 3, Mortgage origination date and the outstanding principal amount as well.

#1 Finance company-original loan Line 2 outstanding mortgage principal is 405,443.39 and line 3 mortgage origination date is 05/04/2017. Also box 7 is unchecked and line 8 has the address of the property I reside with secured loan.

#2 Finance company-Started the refinance process and approved. I paid only two days of interest before it was sold to Finance company #3. Line 2 outstanding mortgage principal is 400,000.00. Line 3 mortgage origination date is 09/28/20. Line 7 is checked.

#3 Finance company- Loan ended here. Line 2 outstanding mortgage principal is 400,000.00and line 3 mortgage origination date is 09/30/2020. Line 7 is unchecked and line 8 has the address of the property I reside with secured loan.

In some of the forums it states to add if they have the same outstanding mortgage principal, but in my case two of the forms have different amounts.

Re: How to report Form 1098 with different amounts and dates.

MarilynG1 — Tue, 30 Mar 2021 21:57:22 GMT

Since you had an Original Mortgage and Refi in 2020, click this link for a Workaround for Limited Home Mortgage Interest if your mortgage interest is being incorrectly limited.

You can enter the 1098 for the Original Mortgage, and combine the 1098's for the Refi's together, as you suggested.

When you have more than one Form 1098 with the refinance info and both show the same balance of the mortgage, TurboTax adds the amounts together. And that may lead to a limitation of the deduction, because the balance is then overstated.

Re: How to report Form 1098 with different amounts and dates.

PSBMANLIJZM — Tue, 30 Mar 2021 22:35:20 GMT

Thank you for your response. I may have questions later in the state tax for California under mortgage adjustment appear -1., but if I include only one entry with the correct amount paid in taxes and interest the amount does not appear in the state tax.

Re: How to report Form 1098 with different amounts and dates.

PSBMANLIJZM — Wed, 31 Mar 2021 20:03:34 GMT

I entered Forms1098 from refinance together, company 2 and 3 by adding line 1. They have the same outstanding mortgage principal but not the same mortgage origination date. I used the origination date of company 3 whom I am paying the mortgage to now.

Company's Form 1, I inputted line 1, mortgage interest and inputted line 3 date 05/04/2017. Box 2 on form has an outstanding mortgage principal. Turbo tax created the Deductible Home Mortgage Interest Worksheet and I believe it's adding two ending balances from the original home loan and the refinance as one complete loan as 801,000. This number appears as average balance of all home acquisition debt. I believe the amount should be under 400,000.

On the Form 1098, box 2 of company 1, I believe the outstanding mortgage principal should have read 0 since the refinance paid off the loan. Should I add zero on this field in Turbo Tax?

The Deductible Home Mortgage Interest Worksheet are not created if I only use the refinance information using the amount I paid in taxes and principal (company 1,2,&3) for the entire year. Using company 3 information on Form 1098.

California Adjustments CA 540 under column C additions. The worksheet Turbo Tax added -1 under line 8a Home mortgage interest and points reported to your Federal Form 1098. I inputted no points were paid.

It also decreases by a dollar my itemized deductions.

Why is this showing up on tax forms?

I believe this is due to how I am reporting the 1098 forms.

How should I report 1098 so it shows correctly on the worksheets?

Re: How to report Form 1098 with different amounts and dates.

PSBMANLIJZM — Wed, 31 Mar 2021 20:59:06 GMT

After reading this a million times, I guess I have to add numbers from box 1 from all three forms and include that number in turbo tax with any property taxes paid. The other information boxes 2, 3, 7, and 11 using Form 1098 for the original loan, company1.

How do I answer the following question?

Is this the original loan you took out to purchase this property?

Yes this is the original loan I used to buy or build my home.

No this is a home equity line of credit or a loan that's been refinanced.

Not sure since I combined all three Forms and entered into Turbo Tax as one mortgage lender.

Am I doing this correctly?

Re: How to report Form 1098 with different amounts and dates.

MaryM428 — Wed, 31 Mar 2021 22:45:18 GMT

Answer - No this is a home equity line of credit or a loan that's been refinanced.

When you chose that answer there will be questions about how you used the money from the line of credit or refinance. When you refinance, the date of the refinance is what is then entered as the original loan amount.

In order to keep TurboTax from adding the amount of debt together and limiting the mortgage deduction allowed, you will combine the three 1098's.

Add together the amounts in Box 1 and enter the total as mortgage interest
Add Together the amounts in Box 5 and enter the total as Mortgage Insurance Premiums
Add the property tax paid from each form and enter it in the Property (real estate) taxes box
Use the loan's original 1098 form to enter the amounts in Boxes 2, 3, 7, and 11

Multiple 1098's for Refinance