Multiple 1098 forms Point deduction Issue

nrp13 — Mon, 15 Apr 2024 10:59:24 GMT

I got two 1098’s for my home purchase in year 2023, lender sold the loan immediately after home purchase.

First lender Loan amount

BOX 1: 1552.13

BOX 2: 1007162.00

BOX 3: 05/09/2023

BOX 4: 0.00

BOX 5: 0.00

BOX 6: 8339.30 (points)

BOX 7: unchecked

BOX 8: My primary address

BOX 9: 01

BOX 10: 0(taxes paid)

BOX 11: Blank

Second lender (to whom the original loan sold to)

BOX 1: 32,912.22

BOX 2: 1007162.00

BOX 3: 05/09/2023

BOX 4: 0.00

BOX 5: 0.00

BOX 6: 0.00

BOX 7: unchecked

BOX 8: My primary address

BOX 9: 1

BOX 10: other

BOX 11: 07/01/2023

Real Estate Taxes Paid: 5,083.29

Here are my questions:

All my points paid are shown in the 1st 1098 and none in the second 1098. When I enter above info in TurboTax Deluxe Desktop software, it’s completely ignoring first lender Loan points when I come to deduction screen, $25,775. I made sure that I selected correct boxes and never selected refinance anywhere and chosen appropriate latest loan question. What should I do here?

Another issue I am facing for adding both 1098’s, it’s asking me to enter “What was the outstanding loan balance on January 1st, 2024? If you paid this off in 2023 enter the balance on the day you paid it off.”

What should I enter for the first lender in this situation?

For second lender, I am entering Ending Balance $998,489.69 that I got from year end document.

On screen “Your mortgage interest is being limited”

Based on TurboTax our calculation 1098 interest the about is $25,775, which completely ignored points. However, if I remove everything from 1098 section and created one consolidated entry for both 1098’s, Lender name as first lender & second lender, I then see correct deduction number $ 32,012.

I am doing itemized deduction.

Please help me with this situation I spent my whole weekend on this issue.

Re: Multiple 1098 forms Point deduction Issue

zomboo — Mon, 15 Apr 2024 20:04:57 GMT

This is an Turbo Tax error that other users have reported when the new mortgage is over $750K and sold to another bank and has not been fixed as far as I know. You are correct in getting around this error by entering one 1098 as one continuing loan. Be sure to check both "This is a new loan on which I paid points (origination fees) in 2023" box and the "I bought or improved my main home with this loan in 2023" box on the "Tell us about any points" page in order to deduct all points (limited) this year instead of spreading them out.

Re: Multiple 1098 forms Point deduction Issue

nrp13 — Mon, 15 Apr 2024 20:10:23 GMT

Thanks for confirming.

I have talked with TurboTax advisor(Tamika J.), acknowledged that this is a issue/bug with TurboTax. Advisor advised me to do consolidation of my 1098’s is the only way to get around this situation.

topic Re: Multiple 1098 forms Point deduction Issue in Deductions & credits

Multiple 1098 forms Point deduction Issue

I got two 1098’s for my home purchase in year 2023, lender sold the loan immediately after home purchase.

Re: Multiple 1098 forms Point deduction Issue

Re: Multiple 1098 forms Point deduction Issue