In many cases, the problem is that the refinanced mortgage amount in box 2 is entered as the full amount of the new mortgage.
That box asks what is the amount as of January 1, 2019. On a refinance, that amount would be zero.
If you have multiple 1098 mortgage forms, you’ll enter them one at a time.
After going through the steps with the first one, you can add a lender when you get to the Mortgage deduction summary screen. (In the case of a refinance, it's best to enter the 1098 from your original loan before the 1098 from your refinance.)
But, if they're both from the same lender, and one of them has the “Corrected” checkbox marked at the top, enter the corrected 1098 and discard or shred the other one.
I'm still a bit confused. I hope you can help me figure this out. I also have the same dilemna as the OP
I typed in the first 1098 from my original lender.
I added the 2nd 1098 from a lender that I've refinanced with. As you suggested, I didn't enter anything into Box 2 of the TT form since the refinance date was around August 2019. During the process of adding the 2nd 1098, TT asks me "Was this loan paid off or refinanced with a different lender in 2019?" I selected YES.
I answered a couple of more questions and got to this question "Is this loan a home equity line of credit or a loan you've ever refinanced?" I selected "YES this is a loan I've refinanced or a home equity line of credit (HELOC)."
Once I completed this process, I found out that the interest from the 2nd lender was not captured. What did I do wrong? Could you please help me? I can't find this answer anywhere. Thank you
For the refinanced loan on the question for Was this loan paid off or refinanced with a different lender in 2019? The answer would be No. You refinanced loan was not paid off or refinanced with a different lender.
Is this loan a home equity line of credit or a loan you've ever refinanced? Again the answer is No because you have not refinanced the loan you refinanced.