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Level 2
posted Feb 19, 2022 12:13:19 PM

How to enter 3 1098 for my refinance, not to exceed $750,000

I have refinance my mortgage twice in 2021. My lender also sold my mortgage to the other lender. I got 3 1098 mortgage forms. When I enter the them separately, I exceeded $750,000, and TurboTax doesn't calculate my deduction correctly. Kindly advise how should I enter the data.

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2 Replies
Expert Alumni
Feb 19, 2022 12:24:39 PM

Form 1098 is an informational form used to prepare your tax return.  The IRS allows you to use the Average Mortgage Balance in determining your mortgage interest deductibility.  Enter only one 1098 using your average mortgage balance and the total of any other deductible items on your 1098 forms.

 

This link Publication 936 (2021), Home Mortgage Interest Deduction has information you may find helpful

Level 15
Feb 19, 2022 1:59:20 PM

If you can't get TurboTax to do it correctly, (this is common), then you have to do the calculation yourself and enter the allowed amount of deductible interest.

 

If your deduction is not limited, enter the interest on amount used to buy or improve your home.