Multiple 1098s

Forum|Forum|5 years ago
February 28, 2021
1 reply
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I refinanced my mortgage in 2020, so I have received two 1098 forms (one from my previous lender, one from my new lender).

In TurboTax, I listed only one 1098 form and followed below instructions to combine the interest and property taxes. I did not list the 1098 from my new lender because I saw no point -- is this the correct way to do it?

If you refinanced last year, you'll need your 1098 from your previous lender and the 1098 from the lender you refinanced with to enter the details for this screen.

Follow these steps to enter your mortgage info:

Gather all of your 1098 forms related to your refinance, e.g. the form from your original lender and the form from your new lender.
Grab a calculator and add the box 1 amount from each form and enter the total in TurboTax as Box 1 Mortgage interest.
Add the box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything here.)
Add the property tax paid from each form and enter it next to Property (real estate) taxes paid.
Next, finish adding info for boxes 2, 3, 7, and 11 using the 1098 for the original loan.

You could also have additional 1098 forms because your loan was sold by your lender, or you refinanced multiple times. Just follow the same steps but be sure to include info from all of your forms in your calculations for steps 2-4.

Once you’re done here, hold on to your forms for when we ask about points you paid when you refinanced. Points are a fee you pay to reduce your loan’s interest rate. If you paid points, you’ll see an amount in box 6 of the 1098 for your refinance.

JotikaT2

Employee Tax Expert

No, since your refinance was done through two different lenders, you would need to enter them separately and then indicate the loan that no longer exists was paid off.

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

Refinanced mortgage input

Multiple 1098 Forms

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ZKayC

Level 2

I sold a home and paid down the mortgage on primary home, then refinanced the balance on the primary home. The loans were with the same lender. TurboTax deluxe crashes every time after I enter amounts on the screen asking for end of year balances and paid off dates. It crashes whether I enter the data on separate 1098's or in a combined 1098.

Both homes were primary residences. It took a year to sell the first home.

ReneeM7122

Level 9

Please delete your form(s) 1098 and start again.

How do I view and delete forms in TurboTax Online?

Open or continue your return in TurboTax.
In the left menu, select Tax Tools and then Tools.
In the pop-up window Tool Center, choose Delete a form.
Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

Please follow these instructions to enter your 1098 forms:

How do I handle multiple 1098 mortgage forms?

If you have multiple 1098 mortgage forms, you’ll enter them one at a time. After going through the steps with the first one, you can add a lender when you get to the Mortgage deduction summary screen. (In the case of a refinance, it's best to enter the 1098 from your original loan before the 1098 from your refinance.)

But, if they're both from the same lender, and one of them has the “Corrected” checkbox marked at the top, enter the corrected 1098 and discard or shred the other one.

What do I do if I have multiple 1098s from refinancing my home debt?

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.

Home Debt Over $375,000

Under tax law, you are limited on the amount of home interest you can deduct. The limit is based on the loan amount and date of the origination of debt. We want to make sure we calculate this correctly for you.

If you refinanced last year, you’ll have a Form 1098 from your previous lender and one from the lender you refinanced with. You’ll need both forms.

Follow these steps to enter your mortgage information:

Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

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.

See this TurboTax article about mortgage statements.

@ZKayC