My 1098 deduction disappears by answering: "when you refinance or your lender sells your loan you'll get 1098s"

[mehranariani]

Our Mortgage was of transferred by original lender to a new one on February with no payment for month of January to either lenders. We have received only one 1098 from the new lender. When we are in the section asking: 
"Is the 1098 you're working on now the most recent for your loan? (if you only have one 1098, select Yes)"
If I select Yes as suggested by TurboTax, the deduction amount disappears completely from calculation as if no deduction was entered at all. I am confused how I ended up in an scenario which deduction is not being counted.

Thanks

[JillS56]

When you enter the amount of interest in the boxes and click continue, the next screen says:

• Is this Loan secured by property of yours?  The answer should be "yes". 
• The next screen says Tell us about Points you paid to the lender.  Select the answers that apply.   
• The next screen asks Let's see if this is the most recent loan for this loan.  Is this the most recent form for your loan or the only form for your loan answer "yes". 
• The next screen asks Is this the original loan you used to buy your property?  If you answer "yes" 
• The next screen says Thanks we got all your mortgage info and will tell you whether the standard deduction or itemized is better for you.  
• Then click continue and it will take you back to a screen that says Home Loan Deduction Summary and the 1098 you just entered should be listed with the amount.   If that is not what you see then the 1098 did not get entered and you would need to click on Add a Lender and go through the questions to enter the 1098.   

Whether or not you qualify for the deduction, TurboTax will still save the 1098 information.   

I am not sure why the 1098 information would disappear unless something was accidentally hit that deleted your information.

[mehranariani]

JillS56

 Thank you for your answer. I followed all the steps you provided and I was present with these questions: 

1. When did you buy the home with the loan from XYZ bank (XYZ being the loan company who our mortgage was transferred to). I do not know if this is the date the mortgage was transferred or the way back when we bought the house

2. Regardless of the answer above turbo tax asks two more questions:
 - What was the outstanding balance on Jan. 1st?
- When did you make your final Payment? if you did not pay this off in 2021 leave blank

Thanks again

[JillS56]

Q.  1. When did you buy the home with the loan from XYZ bank (XYZ being the loan company who our mortgage was transferred to). I do not know if this is the date the mortgage was transferred or the way back when we bought the house.  

A.  The date of the original mortgage (which would be when you bought the house).   

Q.  2. Regardless of the answer above turbo tax asks two more questions:
 - What was the outstanding balance on Jan. 1st?
- When did you make your final Payment? if you did not pay this off in 2021 leave blank

A.   What was the outstanding balance on Jan. 1st? Only enter the outstanding balance on the current loan.   If your loan was sold to another company, for the original lender, do not enter a balance, leave it blank.   Enter the balance on the new lender (lender who purchased the loan).  

When did you make your final Payment? if you did not pay this off in 2021 leave blank  You can enter the month you made the last payment to the original lender.   For the new lender, leave it blank.

[panxj]

"I am not sure why the 1098 information would disappear unless something was accidentally hit that deleted your information."

The original question was not about deletion of 1098, but deduction change. For example, if you select "yes" here, the  "federal refund" might decrease.

It is related to the $750000 mortgage interest tax limit. When you select "No" to this question, turbotax will ignore the limit and use whatever interest number you entered so far; If you select "Yes" here, turbotax will apply the tax limit correctly. 

So if it's the only 1098 or you merged manually, you should select "yes" here.