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Level 3
posted Apr 14, 2024 12:36:33 PM

How to file mortgage 1098 for loan which was refianced before last year

I have a Single Family Home Primary residence mortgage and I am trying to file the 1098 of mortgage interest in Turbo Tax. The house was brought in Aug 2019 on Loan_A then refinanced in December 2020 with Loan_B and then finally refinanced with Loan_C (current loan) in 2021.

 

I only have one 1098 from Loan_C to which the house was refinanced with in 2021. For 2023 taxes while filing it below  I am saying Yes as this is my only 1098.

 

But after that I am not sure what I should say here because this loan is a refinance of previous loan but the refinance did not happen last year i.e. not in 2023. It was refinanced in 2021. Should I say yes?

 

Then what should be filled in here? Isn't this the Mortgage Origination Date on the form 1098 filed 3? Why is it asking me this again when I did fill it before?

 

The finally it ask me for the balance on Jan 1 2024. If I understand correctly this balance is not the "Outstanding Mortgage Principal" which shows up on 2023 1098 form field 2. I should get this number by looking at my loan January 2024 statement and finding the mortgage principal due. Is this correct?

 

Additional question:

1) Also, in form view which form and fields specifically I can look into to confirm that the mortgage interests are being deducted correctly from my tax and I am not paying tax on it.

2) TurboTax says that my full mortgage interest is not tax deductible and it is being reduced for federal and the full amount will be used only for state filing (California). How can I check that the federal reduced amount is correctly calculated?

 

Thanks.

 

 

 

0 2 12186
2 Replies
Expert Alumni
Apr 14, 2024 2:26:58 PM

I will address each question individually and if you have questions, be sure to reach back to us. 

 

  1. Yes, you can mention that this was a re-finance of a previous loan. There will be an additional pop up that will appear asking if you used the loan for anything else other than paying off the existing loan, here you will say no.
  2. As far as the mortgage origination date, use the date listed on the 1098 T.
  3. Usually the mortgage principal amount is reported as of 12/31. This may vary slightly as of 1/1 so you may wish to verify the correct amount on your January statement. 
  4.  You can look at the Ded Home Mortgage form in the forms mode to see how your deduction was calculated.

You may wish to perform your own calculation by looking in Publication 936 on page 11 and see if it follows the same logic as the Ded Home Mortgage worksheet in your return.

 

@razor5 

 

 

Level 6
Apr 14, 2024 5:01:33 PM

In addition to @DaveF1006 response, the mortgage origination date for the current loan is the date in box 3 of your 1098. However, when asked 'When did you buy the home from Lender C', enter the original mortgage purchase date in 2019.