Here's my issue. I am trying to enter in two 1098 forms, one for the original loan on my home, and a second for when I refinanced in December. Every time I do so, it seems to be removing the deduction instead of giving it to me. I took 0 cash-out, it was a simple refinance for a lower interest rate.
Here are the steps I am taking:
1098 #1:
Enter in the info....
Did you pay points in 2019 when you took out the loan? NO
Was this loan paid off or refinanced with a different lender in 2020? YES (the current mortgage companies who own the loan and gave me the new loan are different)
Is this loan secured by a property of yours? YES
Is this loan a home equity line of credit or a loan you've ever refinanced?
No, this is the original loan I used to buy or build my home.
Congrats, you get a tax break (and more money back).
Mortgage Interest Deduction
Your XXXXX deduction just saved you money on your taxes this year.
1098 #2:
Enter the info...
Did you pay points in 2020 when you took out the loan? We didn't pay points.
Was this loan paid off or refinanced with a different lender in 2020? No
Is this loan secured by a property of yours? Yes, this loan is secured by a property of mine.
Is this loan a home equity line of credit or a loan you've ever refinanced?
Yes, this is a loan I've refinanced or a home equity line of credit (HELOC)
Great. So which type of loan is it? A mortgage loan that I've refinanced
Have you ever pulled cash out from this loan when refinancing it? No
Right now, the Standard Deduction saves you the most on taxes.
At this point the deduction changes and so does the refund. Is it me or is TurboTax not handling two 1098's properly?