You'll need to sign in or create an account to connect with an expert.
The IRS instructions for completing Form 1098 state that box 2 should be the amount of outstanding principal on the mortgage as of January 1, 2021. If the loan was no longer being serviced by that company, there would be no outstanding principal on that mortgage.
This will help you to post it.
I have the same issue as justin-andes. I am a CPA. Over 2020 my home at various times had three mortgages, but only one at a time. At no point was the balance over 750,000. When I followed these instructions from the employee tax expert, the program was still summing my outstanding balances in box 2 to limit my interest deduction. I proved this out by agreeing the ratio of of (loan A box 2 +loan B box 2 + loan C box 2) / 750,000 which matched perfectly the ratio of (loan A box 1 + loan B box 1 + loan C box 1) / deduction allowed by turbotax. A second weakness in the solution proposed there is that selecting on the first loan that it was not a refi would not allow acceleration of any non-amortized points from that loan, which should all accelerate into the current year if that loan was refinanced, but the acceleration is only triggered if you select the radial button saying it was refi-ed or paid off in the current year.
Try this.
steps to enter your mortgage information:
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.
On the Tell us about any points paid to bank screen, answer in regards to the new loan when asked about points.
On the Tell us about any points paid to bank screen, answer in regards to the new loan when asked about points 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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
clarineted
Level 2
zomboo
Level 6
g213
Level 1
trailgirl
Level 2
joshuaB
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.