I received 2 1098 documents. Paid Off Mortgage Primary Home. Do I Receive a Tax Deduction?

[Sayed]

Hi. Rocket Mortgage sent me a 1098. Loan care Mortgage sent me a 1098. Rocket Mortgage was my initial mortgage company, and then Rocket Mortgage transferred the mortgage to Loan care Mortgage on Feb 1, 2025. I paid off the entire mortgage $145,520.87 in 2025. What can I deduct? Can I deduct the paid off mortgage $145,520.87? Thank you. 

[SharonD007 · Accepted solution]

No, you can't deduct the mortgage that you paid off.  You can deduct the mortgage loan interest that's reported on you 1098- Mortgage Interest Forms, if you have enough itemized deductions.

Enter all the information from the first 1099-Mortgage Interest Form  (original loan). Mark that it was sold when TurboTax asks. Next, enter the second 1099-Mortgage Interest Form. Don't enter that the second one was refinanced since the mortgage wasn't refinanced.

The outstanding mortgage principal will be in box 2 of the current servicer.  There shouldn't be an outstanding mortgage principal for the original servicer since the loan was transferred.

Refer to the TurboTax article How do I handle multiple 1098 mortgage forms in TurboTax Online? for additional information.

Refer to the TurboTax Help article Where do I enter my 1098 mortgage interest statement? for navigation instructions.