topic Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the mortgage amounts instead of viewing as same loan. How do you enter? in Deductions & credits

Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the mortgage amounts instead of viewing as same loan. How do you enter?

sjmtax0113 — Sun, 09 Feb 2020 19:41:56 GMT

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

DMarkM1 — Sun, 09 Feb 2020 19:58:28 GMT

Try this solution.

1. Delete all forms 1098 and enter the oldest form 1098 first and work up to the present.

2. Enter all data just as listed on the forms 1098 you have. If box 2 is blank on your form, enter a zero, since you do not know what the number is.

3. Once you have entered all form 1098s and select "Done", TurboTax will subsequently ask you if you exceed the mortgage limits or not.

"Do any of these situations apply to you?"

Mortgages that were taken out on or before December 15, 2017 and they total more than $1 million ($500,000 if Married Filing Separately).
Mortgages that were taken out after December 15, 2017 and they total more than $750,000 ($375,000 if Married Filing Separately).

If you do not exceed the limits, inspite of what the worksheet calculations are, then you select "No" for this question and your mortgage interest deduction will not be limited.

If you really do exceed the limits then answer "Yes", and you will need to manually calculate the mortgage interest deduction using table 1 on page 12 in publication 936 and enter the amount in the box provided. The worksheets in either case are not filed; they are for calculations and records only.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

smkitts — Sun, 09 Feb 2020 22:50:20 GMT

Turbo Tax is overriding when I select no to exceeding the limits. I have two 1098 and TT is viewing it as I have exceeded the limit.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

AlexanderS08 — Mon, 10 Feb 2020 01:44:42 GMT

Did you try following the solution above? As advised, you need to delete both 1098's and then enter the oldest first.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

Pyrarraz — Mon, 10 Feb 2020 01:51:37 GMT

NOTHING I have tried works here. No matter how I enter the info, either on FORMS or in Step by Step, it defaults to the YES answer on the total mortgage, and therefore does not allow me to deduct mortgage interest. This is a $5000 hit. TURBO TAX, please step in and fix this bug!!!

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

AmyC — Mon, 10 Feb 2020 22:24:48 GMT

There is a workaround. When you enter $1 as the value of the loan at the beginning of the year, the program seems to calculate.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

Rick58 — Mon, 13 Jul 2020 05:21:10 GMT

I am also having this same problem. None of the suggestions above seem to work. Any further guidacne woudl be appreciated.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

JotikaT2 — Wed, 15 Jul 2020 14:03:13 GMT

The problem may occur if you have refinanced during the year, and the input reads your data as exceeding the $750,000 limit to be deductible.

If you are working in the Desktop version, you can try the following as provided by jmcglass.

Click on the View link on the top menu bar
Click on Forms
Locate and click on 'Tax & Int Wks' on the left-hand side of the screen (under Forms in My Return)
On the form, scroll down to the 'Mortgage Interest Limited Smart Worksheet'
Click on the 'No' box, to the right of the question 'Does your mortgage interest need to be limited.'

If you are working in the online version, please go back to deductions and credits and mortgage interest.

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: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

Rick58 — Wed, 15 Jul 2020 14:07:28 GMT

Yes. Thanks! I did that and it solved the problem.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

PS1 — Mon, 04 Oct 2021 04:12:44 GMT

Thanks, marking "no" for "does your mortgage interest need to be limited" worked -- now the full interest from both loan servicers appears on Schedule A. Only wish I could permanent delete the Deductible Home Mortgage Interest Worksheet and the subsequent step-by-step interview question. Big error that TurboTax should have resolved by now.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

Nightwatchman — Mon, 08 Jan 2024 20:38:24 GMT

My loan was sold and interest wasn’t included for the second lender. This worked to correct the total deductible interest from the 1098’s from both lenders. I knew the total amount of deductible interest for the year, but entered the total for the first lender only because the second wasn’t available yet and I didn’t calculate manually what the split between the two were. I was shocked when I corrected the amount for the first lender and added the second and the taxed due increased. I looked at the form and it didn’t include the deductible interest for the second lender. I searched for answers and this method was the first one to correct the program flaw. My mortgage was under $100k.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

Nightwatchman — Mon, 08 Jan 2024 20:42:58 GMT

Mortgage under $100k. The delete all and input all new worked to fix the total deductible interest program flaw. I think combining 1098’s would raise a red flag with the IRS since submitted forms wouldn’t match the return.

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

AmyC — Mon, 08 Jan 2024 22:09:58 GMT

Since the mortgage is under $100,000 the entire amount of mortgage interest paid would go to sch A for itemizing deductions. Schedule A shows the total of all mortgage interest. The IRS compares that total to the amounts the lenders report. Your totals would match and there would not be a problem.

Since sch A gives only the total deduction allowed, all the calculating is behind the scenes. In your case, however you feel most comfortable getting the total reported and deducted is fine. You can report one total or input each form. For those with higher mortgages that may be limited, inputting each is recommended.

@Nightwatchman

Re: Received two 1098's. Loan servicer changed. Entered beginning mortgage amounts. TT adding the...

Nightwatchman — Mon, 08 Jan 2024 22:59:33 GMT

I only had one lender in 2022, so that was transferred to 2023. The loan was sold to the second lender in 2023. What happened was I entered the total amount of interest on one lender because I hadn’t received the second 1098 yet (and I didn’t want to calculate this by hand), just to get an idea of what I would owe or what would be refunded. I knew the total amount of interest because I calculated it for the year by hand. Once I received the second 1098, I corrected the interest for the first lender and added the 1098 info for the second (and most recent) lender, the total interest being the same as what I entered for one lender. Once I did this, it only recognized the interest for the first lender only. The recalculation behind the scene didn’t add the interest for the second lender, so the fed taxes owed increased instead of being the same as when I entered total interest for one lender only. I checked schedule A and it confirmed interest for one lender only, not the total interest from both lenders. As suggested by a few posts, I deleted both and re-entered both and it corrected the situation to include total interest from both lenders. So there is some sort of flaw as the posts suggested. Adding an additional lender to the lender that was transferred over from 2022 didn’t recalculate behind the scene the interest paid from both. It only correctly recalculated behind the scene after deleting both and re-entering both. Entering one combined 1098 as some suggested wouldn’t be the correct solution because the IRS is sent both 1098’s and the return wouldn’t match up.