I refinanced and have two 1098 forms

[GoneSailin74]

Except TT adds the mortgage values together to arrive at a total value over the limit, then reduces your deduction. 

[bps65]

Okay, so I will enter both forms, one for each lender.  But my question remains — 

do I follow these same instructions for both?  https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-...

So I first enter the 1098 for the original loan.  I put the combined totals (from both 1098s) into Box 1, Box 5, and Real Estate Taxes.   Then I complete boxes 2, 3, 7, and 11 using the 1098 for the original loan.

Then I enter the 1098 for the refinance loan.  Again I put the combined totals (from both 1098s) into Box 1, Box 5, and Real Estate Taxes.   Then I complete boxes 2, 3, 7, and 11 using the1098 for the refinanced loan, but instead of using the actual number for box 2, I use 0 instead?

Is that right?

[WendyN2]

For a refinance, first enter all of the details for your original loan (that you mention above). Then, before proceeding to the next page,

Please read the following at the bottom of the "Let's get the Details from your XXXX 1098" Page -  "Multiple 1098s related to a refinance done in 2020" before proceeding any further. This should help solve the issue you are encountering. In any case, if the 1098 has a different account number than any other previously entered, this should be entered completely separately, with you making note not to double up on any payments, including real estate taxes paid. 

[bps65]

So now you’re saying NOT to double up any of the info when I enter the separate 1098s?  But isn’t that exactly what this article says I SHOULD do?  https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-...

It says I should combine the numbers from the two forms and enter them together, right?  

[GoneSailin74]

Intuit SHOULD just fix the application and web. 

[Tomographic]

I added both together and entered that amount

[si29xnm]

I’m going to leave a 1-star review on Amazon.com for TurboTax given this unacceptable problem that has not been fixed for years. I suggest others do the same. 

[ReneeM7122]

It depends.  If your loan was sold to another lender, you don't want to add the amounts together because TurboTax will literally add them together.  If you refinanced then you do need to combine.  The following is guidance for handling multiple 1098 mortgage forms.

How do I handle multiple 1098 mortgage forms?

If you have multiple 1098 mortgage forms, you’ll enter them one at a time. After going through the steps with the first one, you can add a lender when you get to the Mortgage deduction summary screen. (In the case of a refinance, it's best to enter the 1098 from your original loan before the 1098 from your refinance.)

But, if they're both from the same lender, and one of them has the “Corrected” checkbox marked at the top, enter the corrected 1098 and discard or shred the other one.

 What do I do if I have multiple 1098s from refinancing my home debt?

If your total home debt is under $375,000 ($250,000 for married filing separate) there is nothing new for you to do in 2020. Enter each 1098 as you normally would.

Home Debt Over $375,000

Under tax law, you are limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you. 

If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms. 

Follow these steps to enter your mortgage information:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

What if I have more than two 1098s?

You should combine all of the 1098s directly related to the refinance and enter it as one 1098.  An example of this is if you refinanced two loans into one loan. Any 1098s not directly related to the refinance should get entered separately.

What if I paid points?

Points on Loans Paid Off in 2020: Enter the points on your 1098 you have started and mark you paid off the loan when promoted.

Points on Loans on New Loans: You will want to enter a separate 1098 to cover these points paid. When prompted, enter 0.00 for Boxes 1, 2, 5, and the Property (real estate) taxes box, and checkbox 7, as you’ve already entered the details on your first 1098. For Box 3, add the date in 2020 when the loan originated.

@bps65

[bps65]

Okay.  I refinanced, so I need to combine then.  But does that mean I only enter one 1098?  Or do I enter one for the original loan with combined numbers, and then a second 1098 for the refinanced loan, again with combined numbers?

[ToddL99]

Enter one Form 1098, with the combined numbers - you should combine all of the 1098s directly related to the refinance and enter it as one 1098. 

Follow these steps to enter your mortgage information:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

See  What do I do if I have multiple 1098s from refinancing my home debt? for additional information and discussion of the issue.

[Skhan484]

What do you do if you have a refinance AND a sale between lenders (so 3 separate 1098s)?  If I combine the two for the refinance and enter the one related to the sale of the mortgage separately it still aggregates the box 2 totals and incorrectly triggers the deduction limit threshold. This guidance doesn’t help solve the problem which other softwares seem to have solved, which is very frustrating. 

[ReneeM7122]

When you say sale between two lenders,  this answer assumes that you mean that your loan was sold to a different bank (without your consent / input/ initiation).

Those 1098s should NOT be combined because they are essentially the same loan, just transferred.  

You should combine all of the 1098s directly related to the refinance and enter it as one 1098.  Follow these steps:

Under tax law, you are limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you. 

If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms. 

Follow these steps to enter your mortgage information:

1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

@Skhan484

[Skhan484]

Yes I understand your guidance is not to combine the 1098 related to the sale/transfer of a loan between lenders. But then my question is how do I enter that??? Because the sold loan entered separately is also triggering the interest deduction limit because of box 2 even thought it is in fact the SAME loan. Your answer only addresses the issue as it relates to refinance. Why can’t TurboTax fix this systematic problem? Every other program has addressed this and I really don’t want to have to switch after 10 years. So please get your programmers to fix this or provide complete guidance. 

[Skhan484]

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-i-received-two-1098-forms-as-...

THIS is the issue your software and company have not addressed. Combining refinance 1098s is all well and good but the issue is still present for mortgage sales. 

[mhaanraadts]

I highly recommend using Forms mode in your situation. Good luck to Turbotax if they ever refuse to honor their 'guarantee' because of using Forms mode. They're lucky no one filed a class action  yet.