Mortgage Point not deducting properly

[User1011]

I have a new Mortgage and it was sold to another company with in the first two months. I have points on the first 1098. 
I was trying to figure out how much break I am getting on my mortgage points. So I tried entering the 1098 info with and with out the points.

I do not see any difference in the refund wether I enter the points or not.

However If I enter the points in the section "Interest not on 1098 and points not on 1098" screen I see a significant jump in the refund.

This mortgage is 750K+ - Can any one explain what is going on. Thanks and apprciate your help.

[User1011]

When I enter points in the 1098 area and revisit the section, the mortgage length and the points don't show up. If I skip and not update again - no change in refund section.

[zomboo]

You may not have enough deductions before or after entering the points so the deduction remains constant as the standard deduction.

When you tried entering the points under 'points not on 1098' section, did you also report points reported on 1098. That would double the amount of points and make the deduction go up.

If you do have enough deductions try this: Enter the 1098s in order received. Mark the first one 'Not the latest 1098'. When you get to the 'Points' page, select both 'This is a new loan in which I paid points' and 'I bought or improved my home with this loan'. On the second 1098, select 'This is the latest 1098'.

[User1011]

Thanks for your response - No, when I entered point in the 1098 section, I did not enter them in the "not on 1098 section". When I entered the points in "not on the 1098 section" I deleted the points from the 1098 section. Yes, I did not want the points counted twice.

If you do have enough deductions try this: Enter the 1098s in order received. Mark the first one 'Not the latest 1098'. When you get to the 'Points' page, select both 'This is a new loan in which I paid points' and 'I bought or improved my home with this loan'. On the second 1098, select 'This is the latest 1098'.

Earlier I was selecting only "This is a new loan on which I paid points".  This time around as you suggested, I selected both new loan and I bought checkboxes. In this, it asks for points and selected this loan was paid off. No change in the refund. 

Second time around, I selected only "I bought or Improved" and did not enter points in the 1098 section. No, change in refund. When done with home loan summary, Turbotax asks few more questions about the loan, in that area, this time around I entered the points in "Not on 1098 section". I immediately see a change in the refund.
I don't think this is a unique situation, and I am baffled by it and trying to figure what might be going on. Greatly appreciate your response.  

[zomboo]

The 'This loan was paid off' box should not be selected. I ran some examples on my desktop version and it deducted all interest and points I entered (my example had a balance less than $750K). I entered the first 1098 as I suggested before with both boxes selected and 'not the latest 1098'. I entered the points on the 1098 and made sure the 'paid off' box was not checked.

For the second 1098, I selected 'is the latest 1098' and left all boxes unchecked on the points info page (although I think it would be okay to check the 'Bought this home' box (2nd box from top).

A couple of things to check if you still think there is a problem. First, check the interest and points reported on Schedule A line 8a. Remember, your interest and points will be limited because your mortgage is over $750K. If that doesn't work, delete your mortgage 1098 and reenter from scratch. With all the different things you have trying, there may be some leftover junk giving problems.

[User1011]

Thanks and appreciate you spending time trying to figure this out.

Yes, checking this loan is not paid off while entering the first 1098 made the difference. This looked good until I entered the second 1098  and on the question "Have you used the money from this loan exclusively on this home". If the select Yes - the deductions revert back and if I select No - the deductions remain. 

At this point looks like I am better of not entering the second 1098. I tried multiple times and this is what I found.

I deleted the second 1098 and the deductions go down a little bit, than entering the second 1098 and selecting  No for  "Have you used the money from this loan exclusively on this home". 

However if I enter the second 1098 and select Yes for  "Have you used the money from this loan exclusively on this home". The deductions go back down to what they were prior to entering any of the 1098s. 

[zomboo]

With fear of insulting you, it sounds as if you may be reading the 'deduction' meter incorrectly. If the value is in RED text, it is showing the tax owed. If is in GREEN text, it is showing a refund.

[User1011]

😂I wish that was that the solution.

[User1011]

This issue is not resolved - signed up for full service. The tax consultant is also having similar issue on her side. She submitted it for review and opened ticket to get this issue resolved. Waiting for their response.  

[nrp13]

@User1011  was this resolved? if so, what was the resolution? I am having same issue with 1098's

[User1011]

This issue is not resolved yet.  The Turbotax expert I was working withs last day is today. Most probably they will assign full time expert.

[nrp13]

I had similar issue, TurboTax advisor on call told me to consolidate my multiple 1098's into one. 

[zomboo]

I ran this scenario on the desktop version and verified the error when the new mortgage is over $750K and sold to another bank. If the mortgage is over $750K but not sold, the interest and points are limited as expected. If the mortgage is less than $750K and sold to another bank, the full interest and points are included in the deduction.