I followed instructions to combine values of some 1098 boxes for 2020 refi. I have no points on my new loan. Do I provide any information on the refinance lander?

[KrisD15 · Accepted solution]

No, if you are entering the full amount on one 1098 screen, keep the additional 1098(s) with your tax file, but you won't be adding the lender information into the TurboTax program. 

The IRS gets copies of the 1098(s) and as long as the totals add up, you're good. 

[dinoposta]

Thank you very much for your help!

[mbrink12]

Do I have to check the box that says the mortgage interest is different than what is on the 1098?

[JohnB5677]

In the scenario combining the 1098's you would have to check the box that the mortgage interest does not match the 1098.

However, I'd like to propose an alternative.   

If you've refinanced or had your mortgage lender changed, the outstanding mortgage principal listed in the combined total of them on Line 2 of the 1098 will be too large.

When you put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest".

To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Enter both 1098's.

Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal".

@mbrink12

[mbrink12]

When I do this the system won’t let me continue because it says outstanding principal must have a number.  

[Cynthiad66]

OK!  

There is a known problem with Home Mortgage Deduction.  TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades.  We have not been given an  expected date for the fix yet.  Please check back often to see if you can file your return.

OR

In the meantime, you can try this work around.  You did not provide the details of your Mortgage situation and therefore I am giving you a general work around that might help.  Please try this.

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file.