Form 1098; Does it work with a refi on a reverse mortgage and how do you know how much interest to deduct?

Do you have a 1098 from a reverse mortgage or is it from a HELOC?  Normally there are no payments due on a reverse mortgage. 

If it is from a reverse mortgage then no, reverse mortgage payments aren't taxable. Reverse mortgage payments are considered loan proceeds and not income. The lender pays you, the borrower, loan proceeds (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home.

• With a reverse mortgage, you retain title to your home.
• Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die.
• Interest (including original issue discount) accrued on a reverse mortgage isn't deductible until you actually pay it (usually when you pay off the loan in full). Also, a deduction of interest may be limited because a reverse mortgage generally is subject to the limit on home equity debt, which is not deductible unless the proceeds are used to buy, build, or substantially improve the home that secures the loan. For information on deducting mortgage interest and the debt limit that applies, see Publication 936, Home Mortgage Interest Deduction.

Sold my (living) father's house July 2021. Rec'd a 1098 from the Reverse Mtg company. Mtg origination date April 2010 (before the rule change). The 1098 includes the cumulative amounts for interest and MIP. This was a Line of Credit mortgage to use equity in the house, i.e., not a refi of the original loan (1973) or to pay for improvements. Given that the interest is not deductible, when Turbo Tax asks Any 1098? Yes/No, do I answer "No" and not complete any info?  Isn't the 1098 submitted by the mtg company to the IRS?

You are correct.  You can answer 'No' to the question about having any 1098s. The IRS does get a copy of the form because it's required.

Because reverse mortgages are considered loan advances and not income, the amount you receive isn't taxable. Any interest (including original issue discount) accrued on a reverse mortgage is considered home equity debt and isn’t deductible.

When reverse mortgage borrowers make payments, they're issued a 1098 statement, typically generated when a reverse mortgage loan is repaid partial or in full.