Deductible Home Mortgage Interest Worksheet

[DianeW777]

You can get the right results for both federal and state by entering the mortgage interest using the method below.

What if I have more than two 1098s?

You should combine all of the 1098s directly related to the home mortgage and enter it as one 1098.  A sale or refinance of mortgages is a perfect example of when this will be the best action. The key is that all of your mortgage interest is included with your tax return if your outstanding principal loan balance is below the maximum of $750,000 (or $1M for grandfathered debt incurred on or before December 15, 2017).  And as you indicated, all loan proceeds were used to improve your home.  Keep all of your Forms 1098 with your tax return for the details.

Add each box that has an entry and enter it in the same form (one form) with the mortgage interest.

NOTE:  The outstanding loan balance should be the actual loan balance, do not add that together from each form.  Use the most recent lender's loan balance when requested for that entry. 

For more information please see IRS Publication 936.

@markb43082

• What do I do if I have multiple 1098s from refinancing my home debt?
• How do I handle multiple 1098 mortgage forms?
• Where do I enter my 1098 mortgage interest statement?

[Edited: 02/17/2022 | 10:00a PST]

[SteveHarvey]

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@AliciaP1 wrote:

To avoid waiting to file you should combine the two Form 1098s directly related to the refinance and enter them as one Form 1098.  

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What if we are willing to wait? Does Intuit actually plan on rolling out an update on Feb 17, or any time at all during this tax season? 

[CarissaM]

Yes it is expected to be ready on Feb 17, 2022. @SteveHarvey

[msander4]

I'm having the same problem.  It's now February 17 and I logged on to finally file my taxes and I'm still getting the same error message saying the form will be ready after February 17.  At the same time, I got an email from Turbo Tax alerting me that I have to file by February 30 to get a discount on the filing fee.  I'd love to file!  But Turbo Tax won't let me.  When will this form actually be available we can all file?

[tommyy]

Same here, waited until Feb17th to log back on and file. However, I'm still getting the same error message... 

[SteveHarvey]

@msander4 @tommyy It's early; I'd at least reserve your frustration until the end of the 17th. That being said, I have a feeling we're going to be sitting here on March 1st looking at an error message that says "we expect to have the form ready by February 17th." I hope I'm wrong, but it's not clear to me what is so special about Feb. 17. Who are we even waiting on, the IRS, or TurboTax? If the form is already out then Intuit should be able to update the new form easily, but if the issue is that the government is still working on it, it may be time to dig through the junk drawer for my calculator to do this workaround.

I saw @CarissaM replied to my comment confirming it should be ready on Feb. 17, but it's not clear to me whether they know any more details about the form's progress, beyond what the error message says. 

Edit: I see TurboTax just pushed out an update this morning (Feb. 17). Installed it, but I'm still getting the same error.

[msander4]

Thanks @SteveHarvey   Are you using the web version of Turbo Tax?  That is what I'm using and I don't see any change.  From the previous conversations on this issue in this thread, it appears this is a Turbo Tax issue and not an IRS form issue.  

[SteveHarvey]

No, I'm using the desktop version. Watched as the big update downloaded this morning, but no fix.

[SteveHarvey]

This is a bad solution because you end up getting a lower deduction than you're entitled to take, if both mortgages are above the 750,000 limit. That is, if you pretend the two mortgages are merged into  one 1098, TurboTax won't account for the lower balance on the second mortgage, and as a result, when it divides the 750k limit by the higher balance, the result is a lower percentage applied to your total mortgage interest paid in 2021. In other words, you don't get to deduct as much mortgage interest because TurboTax (incorrectly) thinks your mortgage's balance is further from the 750,000 limit than it actually is.

[ValenGue]

I have had my taxes ready to file for weeks. I thought the worksheet would be ready today, but it is still not ready and I’m getting the same error. Can you provide an update please on when should we expect it?

[Syaorandc]

Still waiting myself. Using online version. Been ready to file since January 18th. This silly form just keeps telling me my names are wrong(they aren't).  I noticed the message did change from "We expect this form to be available on or after February 17th" to "We expect this form to be available after February 17th".

This isn't an IRS issue. The IRS has had this form ready since early January. This is all Turbotax.

Edit: The "answer" for the original post is not a solution as both of my 1098s are combined and I am under the 750K, yet I get the name error. Come on TurboTax, this should not take this long to fix.

[chuckster59]

I agree that this is utterly RIDICULOUS and unacceptable. As a 20 year TT user who just started using the online version instead of CD-ROM box version I am unhappy with Intuit’s lack of attention to a detail that could be solved if they would just put some developer on the issue and run it to ground. Intuit Dev team…get this scrum into an urgent story and get this fixed please!

[DianeW777]

Here is a possible solution for you to continue to file your tax return. You can get the right results for both federal and state by entering the mortgage interest using the method below. 

What if I have more than two 1098s?

You should combine all of the 1098s directly related to the home mortgage and enter it as one 1098.  A sale or refinance of mortgages is a perfect example of when this will be the best action. The key is that all of your mortgage interest is included with your tax return if your outstanding principal loan balance is below the maximum of $750,000 (or $1M for grandfathered debt incurred on or before December 15, 2017).  Keep all of your Forms 1098 with your tax return for the details.

Add each box that has an entry and enter it in the same form with the mortgage interest.

NOTE:  The outstanding loan balance should be the actual loan balance, do not add that together from each form.  Use the most recent lender's loan balance when requested for that entry. (As of January 1, or the first day the loan was taken out in 2021)

• What do I do if I have multiple 1098s from refinancing my home debt?
• How do I handle multiple 1098 mortgage forms?
• Where do I enter my 1098 mortgage interest statement?

Any additional debt not used to buy, build, or substantially improve a qualified home isn't home acquisition debt. TurboTax will calculate the amount of allowed mortgage interest deduction based on your entry or you can choose to make the entries yourself.

• To review the information and worksheets you can use this link: IRS Publication 936, page 12 (you can make the appropriate entries by selecting 'I'll enter it myself'

@Syaorandc

@ValenGue

@SteveHarvey

[ppapi]

Good morning, could someone in the TurboTax team tell exactly when the update will be available to finally be able to file our tax return ?

I appreciate the suggestions about combining the 1098, but I'd just like to finalize my return in the appropriate and correct way.

The fix is not here yet, so I'd expect that the TT leadership communicates ASAP when exactly it will be available. Thanks a lot.

[tommyy]

Second this!!