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When you enter your 1098 information into the 1098 section of TurboTax's interview, enter the same amounts that show up in the corresponding boxes on the 1098 you received from your lender. TurboTax would to figure out the rest for you -- if there are any limits to be applied; TurboTax should apply them.
Yes, You should enter the entire amount of interest that is indicated on your 1098.
TurboTax will make the calculation to adjust the deductible portion of the interest.
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