TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 1

Question

Multiple 1098 Mortgage Interest

Forum|Forum|6 years ago
February 23, 2020
7 replies
0 views

I sold a home in one state and bought a new home in another state in 2019. I received a 1098 for the sold home which was a loan refinance 12/6/2017, no money taken out. Home originally purchased with mortgage 6/9/2005. Sold the Home 9/17/2019.

I bought a new home on 6/19/2019 before my old home sold. That loan was sold to another bank after 1 mortgage payment so I have 2 1098s from that loan.

Both homes were my primary residence in 2019, moving one to another.

When I put all 3 1098s into turbo tax, initially it says I can deduct all, but on the next section "Do any of these situations apply to you?" Other than maybe the overlap of the loans they do not. When I select "no" it FORCES the selection of "Yes" and I loose all of the Mortgage deduction. Federal Refund goes from $3700 to owing $2000. Schedule A says "0" mortgage deduction.

It doesn't make any sense that I should loose ALL the deductible mortgage interest. Do I need to find an accountant or can you folks give me a work around.

THanks

Scott

DianeC958

Level 12

The most common issue is the amount you have put in Box 2 when adding the information from your 1098 forms to TurboTax.

Box 2 is the amount of the mortgage as of 01/01/2019. For your new loan and your sold loan that amount would $0.

Please review your information and make the correction. By making this change then all of your mortgage interest will become tax deductible.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

STHorstman

Level 2

The problems are: 1) That's not what it says on the 1098 for the mortgage I had the first part of the year and 2) TurboTax won't let me enter a $0 value in that field.

cas2132

Level 2

I am also having this issue. My original loan was sold in Jan 19 and in mid year 19 I re-fi'd to a VA IRRL loan. So I have 3 1098's. There is a bug in the Turbo Tax. I check the "No , none of these apply...." and Done and all seems well. TT then reverts this to "Yes,,... " and my taxes go from $2xxxx refund to -$4xx DUE. Pictures are attached. This is very upsetting and needs an immediate fix. I will not continue using TT until/unless it is fixed.

ttached.

LeonardS

Level 14

You will receive a Form 1098 from each financial institution that serviced your mortgage. When your mortgage is transferred to a new financial institution for servicing this is not a refinancing of your mortgage. Your beginning Outstanding Mortgage Box 2 and Mortgage origination date Box 3 do not change when the servicing of your mortgage is transferred to another financial institution.

If you have not refinanced your mortgage and have multiple Form 1098’s to report, follow these steps.

With TurboTax open enter 1098 in the search box
Click on Jump to 1098 in the results box
Follow the prompts to enter your first Form 1098
When you have completed the first Form 1098 click Add another 1098
When you have added the last 1098 click on Done

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

owen111

Level 2

Also, for two 1098 forms due to one lender selling to another in 2019, do I enter points paid on purchase of principal residence twice then or just once on my current lender?

STHorstman

Level 2

What I found I had to do to fix this is open up Schedule A in the Forms View and then override field 8A with putting in the total interest paid that could be deducted.

Ash29

Level 2

I am having the same issue (loan refinanced and purchased by another bank so total inappropriately appearing to be more than 750k and TurboTax reverting my input). I appreciate your suggestion about entering zero but this is for the IRS 2019 publication and doesn’t seem to jive with what you’re saying:

”Box 2. Outstanding Mortgage Principal
Enter the amount of outstanding principal on the mortgage as of January 1, 2019. If you originated the mortgage in 2019, enter the mortgage principal as of the date of origination. If you acquired the mortgage in 2019, enter the outstanding mortgage principal as of the date of acquisition.”

Any further suggestions appreciated. You’d think TurboTax could figure out the total mortgage based on the origination and acquisition dates...

stefank118

Level 2

I have the same problem as the other customers.

Sold my old home and bought a new one in 2019. The new house's mortgage was bought out by another institution so I have 3 1098s.

TurboTax is reverting my response to the special situations question (Mortgages taken out after 12/15/17 total more than $750k) to yes, even though it should be no - removing my deduction.

I cannot enter 0 for the Outstanding mortgage principal as suggested by the first TurboTax suggestion. And following the steps suggested by the other TurboTax person results in the same outcome as when I did it the first time on my own.

This seems to be a clear software issue. How do we override or fix?

SkiRX

Level 2

Hi all,

Here's the solution to the situation where you have TWO 1098s related to ONE mortgage that was serviced by two different lenders during 2019 (i.e., your original loan was sold to a different lender during the year).

TurboTax actually allows you to override its assumption that these two 1098s are for two different loans. Here's how:

Go to the form Tax & Int Wks. Go to the Mortgage Interest Limited Smart Worksheet. Look for the line reading "Does your mortgage interest need to be limited" and click No. TurboTax recalculates WITH interest from both 1098s being added together and entered onto Schedule A.

Hope this helps others! I didn't figure it out till after I filed my return (bad on me) so now I need to amend. Grrr.

KrisD15

Level 15

@sfrank99

ONLINE USERS:

Please go back to the Home Mortgage Interest section:

Click Federal on the left side-bar

Click Deductions & Credits along the top

Scroll down to “Mortgage Interest and Refinancing (Form 1098)” Click Edit/Add

Scroll down the “Here’s your 1098 info” screen and click Done.

Next screen asks “Do any of these situations apply to you?” Select “Yes, one or all of these situations apply to me.” and Continue.

On the following screen, you will see the “Original amount”.

Enter the amount you can claim as a Home Mortgage Interest deduction in the “Adjusted amount” box. The Adjusted amount cannot be larger than the original amount or you will receive an error when trying to file. Instructions on who needs to adjust interest and how to calculate are available by clicking the blue “Help me figure this out” link.

DESKTOP USERS:

Go into Forms (top right)
Enter the amount on Tax & Int Wks
Mortgage Interest Limited Smart Worksheet section
Line A2

Step by Step

Federal

Deductions & Credits

Mortgage Interest, Refinancing and Insurance Click Update

Click Done

Click Yes, one or both of these situations apply to me. And Continue

Enter the Adjusted amount and Continue

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

gmberg

Level 2

No one at Turbo Tax can figure this out - but I did myself (after two hours on the phone with very inept representatives). HERE IS THE SOLUTION!!! Go to Forms. Go to Home Int. Wksht for the property you sold. Go down to Home Mortgage Interest Limitation Smart Worksheet. Go to Box E: Outstanding mortgage principal as of 12/31/2020 (or pay-off date...). Hard-key this to $0 (it automatically puts in the 1098 balance in there which is incorrect). Then go back to the Deductible Home Mortgage Interest Worksheet and look at line 18 to make sure it is $0, which means all of your mortgage interest has been deducted without limit. I hope this helps!!!!

Margaret77

Level 2

No one from TT will like my posting. I've been using TT for YEARS but no more! I had tons of issues and never got any help TT this year. I'm now trying to create a "dummy" return to see how the sale or my old house and the purchase of a new house will affect my taxes. I want to be certain that I have send adequate funds to the IRS for the estimated taxes. I have had the same issues noted above. And TT is NOT simple to use on this matter. I "give up." I've also changed states. So, I'm hiring a CPA. I'd rather pay someone to tackle this than deal with TT any longer. I'm disgusted by how difficult these forms are!! It's beyond stupid!