topic How can I avoid TurboTax adding up Principal from two 1098 forms for the same loan but different collectors? in Deductions & credits

How can I avoid TurboTax adding up Principal from two 1098 forms for the same loan but different collectors?

akulas — Wed, 15 Apr 2020 21:35:25 GMT

It shows up as two loans in 540/540NR

Is there a way to edit 540 worksheets directly?

Re: How can I avoid TurboTax adding up Principal from two 1098 forms for the same loan but differ...

MarilynG1 — Wed, 15 Apr 2020 22:33:17 GMT

You can edit the worksheets directly in the TurboTax Desktop product, which can be either a CD or Download.

However, in TurboTax Online, you can Edit your 1098 entries to be sure the first loan has a balance of $0 and the second 1098 shows the beginning loan balance, so that the two loans are not added together.

Type '1098' in the Search area, then click on 'Jump to 1098'. At the Home Loan Deduction Summary page, choose EDIT to check your 1098 entries.

Click this link for more info How to Enter Multiple 1098s.

Re: How can I avoid TurboTax adding up Principal from two 1098 forms for the same loan but differ...

akulas — Wed, 15 Apr 2020 23:28:29 GMT

Thank you MarilynG1.

Is there any significant difference in which 1098 gets set to zero for Box2?

By definition, the first loan should have a value as it is the balance as of Jan 1st, right? That tempts me to set zero for the second 1098 which started in April

Looks like either solutions work. Wondering if one way is better than the other.

Re: How can I avoid TurboTax adding up Principal from two 1098 forms for the same loan but differ...

MarilynG1 — Thu, 16 Apr 2020 00:16:48 GMT

Since the original loan was paid off in 2019, I would enter a loan balance of $0 for that loan.

Re: How can I avoid TurboTax adding up Principal from two 1098 forms for the same loan but differ...

ecd — Tue, 14 Jul 2020 09:37:21 GMT

Thanks for these insights...however these don't work for me.

For both the 1098 forms (for the former and new owner of the loan), the Box 2 (outstanding mortgage principal) and the box for loan balance on 1/1/19 are locked together. I.e. I cannot set different amounts.

Thus, I'm not able to get past the California 540 worksheet, which thinks I have two loans on the house.

Any other workarounds?

I'm using TT online premier.

@MarilynG1