2020 Mortgage Refinance with Points

[mley]

I refinanced my mortgage in December 2020 and paid points.  When I entered the mortgage info on 2020 CD Premiere, it did not ask me for the points I paid.  Is this because it refinanced was completed in December 2020?  Any ideas if I missed something? 

[DaveF1006]

IT should have. After you entered the mortgage information on the 1098, the next screen should have asked you about the points paid. Here is what that screen should look like in Turbo Tax Premier.

[mley]

Dave, I received 2 1098 in 2020.  One 1098 was for the old loan and the second 1098 was for the refinance I did in Dec 2020.  I have entries for each 1098 in CD/Premiere - see screenshot below.  The first entry does ask me for the points I paid.  The second entry does not ask for the points I paid.  Any ideas why?   Do I need to combine both 1098s into a single record?  

[DaveF1006]

Yes, I would combine the two 1098's and list the most current balance as the loan balance. State that this is a refinance and see if it asks the information for the points. The reason I say this is that the points needs to be amortized over the life of the loan instead of being deducted all at once as required for refinance mortgages. List the lenders name that on the refinanced 1098 and make sure to list the loan origination date as the date that is listed on the refinanced 1098.

[mley]

I will combining both later.   The only issue with combining both is that I will not be able to deduct the remining points on my initial loan?  There is a checkmark at the bottom of the screen that asks if this loan was payoff and new refinance was initiated.  

Should this issue be reported as bug to TurboTax CD Premiere?  In my opinion, this should be fixed and addressed in the software. Let me know your thoughts.  

[mley]

Dave, if I combine both 1098, should I check "This loan was paid off or refinanced with a different lender in 2020"?  - see screenshot

[DaveF1006]

Yes, but you can calculate the points that are remaining on your original loan and combine them with the new loan.  The only drawback is that those points will be amortized over the life of the refinanced loan. 

[DaveF1006]

No. Because of the unique nature of this reporting, I would check no to that particular question.

[mley]

Dave, I entered the same info on the online (web) version and I was able to entered points for each 1098.  I think this clearly shows that this is a bug in the CD/Premiere version - see screenshot.   Would you be able to report this as a bug? 

[mley]

HI Dave, I managed to entered the two 1098s into the CD/Premiere version.  The workflow changes based how I answered some questions.   Thank you for your assistance.