Adding multiple mortgage lenders reduces my refund amount?

[suttonm11]

I've done exactly what you said and no additional question to wrap up the section.

I've entered a total of $26k interest and the balances of 838k and 644k and it is limiting the interest deduction to $14k .  See screenshot.  Please give me more advice

[suttonm11]

Yes that's what I did.  I now have 3 lenders entered but no additional question was asked as in your example and its limiting the deduction to $14k as per my other message.

I've been using TT Premier desktop for 8+ years so I know my way around it

I also just downloaded updates, deleted all loan entries and re-entered them and got the same result :(

[DaveF1006]

At this point, you might wish to contact live tax support at 1-800-446-8848. As I mentioned, it worked fine in my Turbo Tax test return using the same product. Can you send me a screenshot in the screen that says We need a little more information to wrap up this deduction. it is the screen that immediately follows the Home Loan Deduction Summary screen.

Just one last question, is your Turbo Tax product a download you order from Turbo Tax every year or is it from a CD bought from a retail organization? 

[suttonm11]

Hi Dave

Its a CD bought from a reputable retailer (Target).

I'm even more concerned now.  I entered a zero balance for the loans paid off and hit the 'back' button when I got blocked by the warning and it seemed to give me full credit for the interest.

Then I went through to the Federal check process just to be sure of no issues and it came up with errors saying the loan info entered needed fixing.  see screenshot below.  From what I see on the actual forms, I think the software should have flagged to me to enter a date the loan was paid off in both cases and not its flagging it as an error that needs to be fixed.  Something is off.  I'm going to call live support, thanks

[vimr]

I have one question related to steps mentioned for 'What do I do if I have multiple 1098s from refinancing my home debt?'

Wouldn't this mean, I would only have one entry for the lender? How do I show both the lender names on my return? Would this flag as an error or trigger an audit?

[Cynthiad66]

IRS is looking for the numbers.  As long as the numbers are correct they, most like will not question.  What they see is that the number is there and therefore explainable.  If they need additional information, they will request an explanation but not hardly.

You have your documentation if necessary but it is not highly questionable.

[BrianneKN]

Thanks for this reply, and I Truly appreciate all the info, but I don't think it speaks to my issue directly. You mention it's important NOT to combine the totals when your mortgage is sold, but all the instructions talk about combining the interest totals. So here is my exact situation:

My lender sold my mortgage

My new lender offered me a refi

Original 1098 from Lender 1

Second 1098 from Lender 2

Refi 1098 from Lender 2

I appreciate any assistance you can provide that is not going to get the IRS upset!

[DaveF1006]

It depends. In this case, I would combine all three 1098's into one because:

1. The IRS is not concerned about you changing lenders or who your lenders are.  Basically you had your original loan and changed lenders. 
2. You basically have the same loan but different lenders. This all can be combined on one 1098. As long as the totals match and your loan balance is below $750K, you are reporting your information correctly.

[cyvierra]

Just wanted to chime in here as I have almost the identical problem.....4 1098s, one was the original loan at the beginning of the year, two of which were refis and one was was a loan sale from one lender to another. I am also using TT premier. My mortgage interest was about 25K but the program kept coming up with only 14K allowed deductible. So, I followed the advice of one of the Expert posters in the thread above and entered the correct amount of the loan balance (box 2) on the very first 1098 entry (the program wont allow 0 on the first 1098 but will on subsequent 1098s). As suggested I then entered 0 in the loan balance box 2 on the remaining 1098s entered and the program now allows me the correct amount of deductible mortgage interest...approx 25K.