Entering multiple 1098 for same loan

[Tenk]

Hello, I sold my previous home this year and bought a new home. I have a 1098 for the original house which was financed before Dec 2017. I also have two 1098s for the new house because the lender changed immediately (not refinanced). When I enter in all three 1098s, Turbotax takes away my deduction (I believe because the loan principal goes over the limit).  Am I entering these wrong?

Thanks.

[DMarkM1]

Maybe not.  You should start by deleting all the Forms 1098 entered; start form scratch. 

Enter the oldest mortgage first and be sure to indicate it was paid off.  Then enter the next loan and enter that it was paid off.  Finally enter the third 1098 and indicate that it was purchased (acquired) in box 11. 

Having said that, there has been a known issue when entering multiple Forms 1098.  If the issue persists, use this link for further help on the topic.   

[4Blakes]

@DMarkM1 I signed up a while ago fro the updates on this issue and I haven't heard anything from turbotax. I read that they would fix it on the 2/12 software update. Is their any way to confirm that?

[ReneeM7122]

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.

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-handle-multiple-1098-mortgage-for...

@4Blakes

[rseago0806]

This is not a fix for the problem.  Turbo tax keeps adding the two loans together when coming up with my tax break.   Since the amount exceeds the 375 limit, i don't get the full tax break and this is really stupid that this is even an ongoing (THREE years!!) issue.

[JohnB5677]

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:

1. Gather all of your 1098 forms related to your refinance
   1. (the form from your original lender and the form from your new lender)
2. Grab a calculator and add together the box 1 amount from each form.
   1. Enter the total in TurboTax as Box 1 Mortgage interest.
3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums.
   1. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
4. 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 do I do if I have multiple 1098s from refinan... (intuit.com)

rseago0806

[Flyygrl2]

I get what they are saying but it says for loans more than $375,000.  My loan is not that much.  I have 3 1098s same lender with 3 different origination dates.  One the outstanding mortgage principal is $0.  What do you do?

[Cynthiad66]

Please Try this:

There is a known problem with Home Mortgage Deduction.  TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades.  There is no expected date yet.  Please check back often to see if you can file your return.

OR

In the meantime, you can try this work around.  You did not provide the details of your Mortgage situation and therefore I am giving you a general work around that might help. 

Please try this.

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file. 

[jenlk]

If I have 2 1098s from the same lender because I refinanced, do I combine them or enter them separately?  If I combine them, then how do I answer the follow up question asking if this loan is the original or a refinance? 

If I don't combine them, do I put a 0 for outstanding mortgage principal for the original loan even though it doesn't show zero on the 1098?

[DaveF1006]

It depends. I would combine the two 1098's and specify that this is the original loan. Be sure to list the latest mortgage loan balance. If you enter the two separately, the will put zero as the mortgage loan balance because if you don't, the two mortgages will be added together and your mortgage interest may be limited if the combined balance is more than $750K.

[FlyawayKnight]

I am going to combine the values from multiple 1098 from refi, which lender name should I put in TT? Original, or newer one?

[CatinaT1]

Either is fine.

[FlyawayKnight]

Thank you.

Another question, should I check the checkbox under Box 1 after I combined multiple interests from 3 1098?

In TT, Checkbox label: "The interest amount I entered is different than what's on my 1098."

[AmyC]

If your numbers add up to that amount, then it matches your 1098 totals. The IRS computer will add what they got and compare it to your sch A total. Within a few dollars and you slide on through - for balances below $750,000. IRS expects potentially less deductible interest with the higher mortgage balances.

@FlyawayKnight

[FlyawayKnight]

@AmyC, you did not directly answer my question, so I am still a little bit confused.

However, based on what you said, I assume that I do NOT check that box since the amount matches the total amount from all refied 1098, so it still counts as NOT "different than what's on my 1098".

Am I right?