Multiple 1098s for Primary Resident

Forum|Forum|5 years ago
March 17, 2021
10 replies
51 views

FYI I am using 2020 Turbo tax Premier

In 2020 , i refinanced by primary Home Loan 3 times , and each time the loan was sold to another servicer. So i have 7 1098's , My Max Loan amount is ~350K.

1. Original 1098

2. First Refinance 1098

3. First Refinance/New Servicer 1098

4. Second Refinance 1098

5. Second Refinance/New Servicer 1098

6. Third Refinance 1098

7. Third Refinance/New Servicer 1098

When i add all the 7 1098s , Turbo Tax is adding all the Loan Amounts and limiting by deduction . This doesn't seem correct . I am getting more refund in HR Block , But have always used Turbotax, so dont want to make the switch. Can someone help me ?

JotikaT2

Alumni - Expert

It sounds like the input is showing the overall amount of your mortgage balance as exceeding $750,000. If so, the amount of your mortgage interest would be limited.

Mortgage interest deduction limits

You will need to review your input on each loan to ensure the following items are properly accounted for.

The loans that were refinanced and not there at the end of the year should reflect a $0 balance in Box 2 under the screen titled Let's get the details from your home loan 1098 as shown in the following sample.

Outstanding balance

You will also want to select that the loan that was refinanced and is no longer there at the end of the year is marked as paid off during the year.

Paid off

Please see the following link for additional information on entering the refinanced mortgage interest expense.

Refinanced mortgage input

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sidbeeAuthor

Level 2

If the 1098 provides a Mortgage Principal , How can i make it 0 ? while inputting the data .

DMarkM1

Level 15

Some customers are experiencing a mortgage interest deduction when entering multiple 1098s for refinancing their home. Here is a link with the steps to follow to enter multiple 1098s as a single 1098.

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