topic I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxes? All figures were different except one which was the property tax. in Deductions & credits

I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxes? All figures were different except one which was the property tax.

bigtrain1966 — Wed, 12 Jun 2019 20:05:07 GMT

When your loan is sold during the year, you should receiv...

ChelsiE2 — Wed, 12 Jun 2019 20:05:08 GMT

When your loan is sold during the year, you should receive two Forms 1098. One should be from the lender who owned the loan on January 1, 2015 and then sold it. And the other should be from the lender who bought the loan and held it on December 31, 2015.

Mortgage Interest Expense:

You should enter the amounts for Mortgage Interest Expense from these Forms 1098 separately, entering each number into TurboTax as shown on each form. Once you enter the first 1098, you'll be able to select "Add a Lender". Then you'll be able to add the information from the second 1098.

Property Taxes:

The two property tax numbers can be added together and entered as one number into the box next to "Your Main Home" in the property taxes section of TurboTax.

https://ttlc.intuit.com/questions/3682760-if-i-have-two-1098-forms-due-to-a-refi-and-both-have-real-estate-tax-info-do-i-add-both-together-when-i-enter-my-property-tax-info">https://ttlc.intuit.com/questions/3682760-if-i-have-two-1098-forms-due-to-a-refi-and-both-have-real-estate-tax-info-do-i-add-both-together-when-i-enter-my-property-tax-info</a>

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxes? All figures were different except one which was the property tax.

logan4886 — Tue, 18 Feb 2020 03:22:20 GMT

When I enter both of my 1098 forms, my return drastically decreases. What am I doing wrong? My original home loan was sold to another bank and so I have two different 1098 forms to enter but it seems that TurboTax sees my loan amount as greater than $1M

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

LeonardS — Wed, 19 Feb 2020 17:47:12 GMT

You will receive a Form 1098 from each financial institution that serviced your mortgage. When your mortgage is transferred to a new financial institution for servicing this is not a refinancing of your mortgage. Your beginning Outstanding Mortgage Box 2 and Mortgage origination date Box 3 do not change when the servicing of your mortgage is transferred to another financial institution.

If you have not refinanced your mortgage and have multiple Form 1098’s to report, follow these steps.

With TurboTax open enter 1098 in the search box
Click on Jump to 1098 in the results box
Follow the prompts to enter your first Form 1098
When you have completed the first Form 1098 click Add another 1098
When you have added the last 1098 click on Done

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

veps — Sat, 22 Feb 2020 00:57:57 GMT

This situation applies to me for 2019 and both of my 1098s showed different Outstanding Mortgage (Box 2) and Mortgage Origination Date (Box 3) values.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

KrisD15 — Sat, 22 Feb 2020 02:22:55 GMT

Enter the older 1098 first.

Select that it was sold

Enter the second 1098

If the loan was never refinanced, the second 1098 is still Not a refinanced loan.

If the loan WAS EVER refinanced, it will always be a refinanced loan.

Box 2 will show the balance of the loan on 01/01/2019 for the first 1098 and the balance on the day the loan was sold for the second 1098.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

jet37 — Sat, 22 Feb 2020 21:31:50 GMT

This situation applies to me also. The original loan company sent a 1098 covering the first three months of 2019. The company they transferred the loan to for servicing sent a 1098 for the remaining nine months with the date acquired box filled in . They each have different outstanding principal balances. After entering both 1098's with (not as a refinance), TurboTax combines the balances shown in box 2 from each 1098, thinks my loan amount as greater than $1M, and wants me to apply a limit on the interest.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

LeonardS — Mon, 24 Feb 2020 17:58:15 GMT

You will receive a Form 1098 from each financial institution that serviced your mortgage. When your mortgage is transferred to a new financial institution for servicing this is not a refinancing of your mortgage. Your beginning Outstanding Mortgage Box 2 and Mortgage origination date Box 3 do not change when the servicing of your mortgage is transferred to another financial institution.

If you have not refinanced your mortgage and have multiple Form 1098’s to report, follow these steps.

With TurboTax open enter 1098 in the search box
Click on Jump to 1098 in the results box
Follow the prompts to enter your first Form 1098
When you have completed the first Form 1098 click Add another 1098
When you have added the last 1098 click on Done

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

logan4886 — Mon, 24 Feb 2020 18:31:29 GMT

How do you select that this loan was sold? I have deleted and reentered the information numerous times and that selection does not exist.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

jet37 — Mon, 24 Feb 2020 18:36:16 GMT

I already tried these steps, and have the following observations:

1) The outstanding balance on each 1098 is different. The first one has the balance at the beginning of the year, while the second one has the balance on the date servicing responsibility transferred (4/1/2019).

2) The mortgage origination date (Box 3) is the same on both 1098's.

3) The second 1098 shows the date acquired as 4/1/2019 in box 11.

4) After following the steps you described, the program incorrectly combines the Box 2 amounts from each of the 1098's, and triggers the $750,000 principal limit on home loan interest deductions. This generates an error when the performing the Federal check process, loading a check mark in the "yes" box, and requiring me to enter a limit.

It appears this issue has been posted several times, and can be corrected with an update to the program.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

VictoriaD75 — Tue, 25 Feb 2020 01:56:32 GMT

There is a workaround for this.

For desktop versions:

In Forms view, locate and click on Tax & Int Wks on the left from the forms list
On the form, scroll to Mortgage Interest Limited Smart Worksheet
Click on NO to the right of the question, Does your mortgage interest need to be limited

For online versions:

Under Deductions & Credits, expand the menu for Your Home
Click Start/Revisit next to Mortgage Interest and Refinancing (Form 1098)
Click through until you get to a screen that says Do any of these situations apply to you? Mark Yes.
On the next screen, take out the zero.
Click back and choose No.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxes? All figures were different except one which was the property tax.

Bmandella — Sat, 14 Mar 2020 15:26:55 GMT

There is no option for this loan was sold

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

DianeC958 — Sat, 14 Mar 2020 16:31:26 GMT

No, you do not add the amounts together on your 1098 forms. Please enter each form separately with the information on that form. When you get to the question " Is this the original loan you took out to purchase the property?" the answer is Yes. Just because the loan was sold it is still the loan that was taken out to purchase the property.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

potsticker — Mon, 13 Apr 2020 04:57:07 GMT

Hi, i have the same problem here.

to recap.

1. there is no "SOLD" option when entering the first 1098.

2. if enter as the expert suggested and choose NO limit on the mortgage interest deduction, then

the state filing thinks the loan balance is almost double what it actually is.

3. none of the expert answer here answered the way to solve this problem.

did anyone managed to solved this? or did everyone just moved onto another software.

i read that this problem was already there for 2018. How can this not be solved?

frustrated

Frank

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

agoy — Mon, 22 Jun 2020 01:34:16 GMT

Did anyone find a solution to this? popsticker summarized it very well.

Entering two 1098 works fine for federal but state counts the balance as double than actual.

Only way to solve this problem is to combine interest from the two 1098's in one and enter as a single 1098.

Anyone, please suggest if you could find a solution to this problem.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

mlevine11 — Wed, 15 Jul 2020 06:05:24 GMT

I'm encountering the exact same issue and am at my wit's end. I can't generate the mortgage interest adjustment worksheet for California correctly (the software has deemed the two 1098's two distinct loans) and am worried I will have to amend my return.

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

tmrito — Tue, 26 Jan 2021 20:50:24 GMT

I also received two 1098 forms because my loan was transferred to another mortgage company. I believe the second 1098 form has the combined mortgage interest from both lenders. When I compare the amounts to last year's mortgage interest they are very similar. If I add the two amounts together it comes out to over $20,000! If I use the one from the newest company it is very close to last year's amount. I would suggest just going with the newest 1098. I hope that makes sense!

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxes? All figures were different except one which was the property tax.

me12071 — Fri, 05 Feb 2021 22:53:28 GMT

I am having the exact same problem...the answer they provided is crap

Re: I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxe...

DianeW777 — Sun, 07 Feb 2021 18:34:11 GMT

Thank you for providing this information. We are aware of this experience. Please sign up for email notification when an update related to this issue is available here.

If you choose to move forward with your return and if you have a mortgage debt that is below $750,000, (or $1M for grandfathered debt incurred on or before December 15, 2017) and there was no cash used for something other than to buy, build or improve the home, this means all of the mortgage interest would be allowed to be used on your itemized deductions. If this is your situation then enter the mortgage debt for Form 1098 with the current lender, and then enter $1 or $0 for the second or former lender in that Form 1098. This will provide the correct amount of allowed mortgage interest deduction.

You may want to delete them first to begin again and also clearing your cache and cookies is a good ides (regularly).

Here's how to enter your mortgage interest statement in TurboTax:

With your return open, search for 1098 and select the Jump to link in the search results.
Follow the instructions to enter your 1098 info.

For more information use this link: IRS Publication 936

[Edited: 02/07.2021 | 10:33a PST]