How to enter two (or more) 1098's when the loan servicing company changes.

[TL313]

@RickG ,

just checking if there's is a resolution for this issue? I'm facing the same issue and happy use my tax form for debugging.

I also tried entering $0 in Line 2 of Original Loan but Turbo Tax did not allow me to proceed

[soniqfreq]

The problem with adding the same value from the other 1098 is that on the California return, the app then adds the two principal balances together, which puts you over the debt limit (if > $1 million).  It then does an "adjustment" effectively increasing the tax burden incorrectly. So you have to enter $0 on the 1098 that began in 2019 (assuming it was just due to service transfer on the same loan). Otherwise, it is a bug and TurboTax has to recognize only one value.  

When you enter $0, an error does pop up when it does the Federal review. It says that you must enter the beginning principal.  I entered $0 again and it takes that and proceeds with the correct calculation. 

[Kat]

Hey everyone,

Just want to let you know that @RickG has submitted this issue for investigation.  Not that it helps you complete your returns, but hopefully there will be more information (or better yet, a fix) soon.

As always, thank you for your patience.

[californiacyclist]

Thanks to all you good folks at Intuit for giving this issue the attention it deserves! Yay!

[Kat]

Hey folks,

I've just learned that the investigation of this issue is stalled because TT has been unable to duplicate the issue that you all are seeing.  Would anyone in this thread be willing to submit a diagnostic file to TT so that they can see what's happening?  Please reply in this thread if you'd be willing to do that.  Thank you in advance!

[californiacyclist]

Thanks for your response, but this approach effectively doubles the loan value, causing the amount of interest deduction to be reduced when filing in the state of California.

[soniqfreq]

@Kat I'll submit for diagnostic. I need them to figure out this issue and why my PMI is not being included in the Schedule A also.

[giveemberg]

@Kat @RickG  Can you please provide a status update on the timing for resolution?  This is the only open item pending for me to complete my tax filing.

[TL313]

@Kat ,

I can submit a diagnostic to TT if someone can show me how.  I’m using the PC version not web base.

[Kat]

Thanks to you all.  The TurboTax Moderators are running this show.  I'm not a TT employee; I'm a user just like you.

Hopefully one of them will be able to update us soon.  

[giveemberg]

@RickG - Can you please provide a status update on the resolution for this issue?  It has been nearly a month now since this issue has been raised, is TT still pending any information for completion?

[RickG]

Unfortunately we have still been unable to replicate the issue with the diagnostic files provided.  There are too many variations with each scenario and instances of either misrepresented information or 1098 documents that may be wrong, that it's difficult to pinpoint an exact reason why some users are experiencing this.  As far as we can tell at this time the program is working as designed.  If you've been effected by this we recommend that your reach out to the issuer of the forms and verify the information is correct. I am sorry I don't have more to offer at this time.

[Kat]

@giveemberg I've been following this issue on a couple of threads.  One of the users struggling with this issue has entered a value of $1 in Box 2 for additional 1098s entered on the same loan.  In other words, the first 1098 entered would show Box 2 value, which would be the loan value as of 1/1/2019.  As for entering subsequent 1098 info on the same loan (refinanced, sold, etc.), you would enter the $1 value.

Not sure this will be satisfactory for you guys, but you may want to play with it and see if you can finish up.  

Here's that other thread:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-2019-limit-deductible-mortgag...

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**Please click "Mark As Best Answer" if your question has been resolved. Thank you.

[TL313]

I tried entering $1 on the 2nd 1098 (which bought my original loan), Turbo Tax still thinks my total loan amount is > 1M.  

[KrisD15]

Just enter the 1098 as it is reported. 

ONLINE USERS:

Please go back to the Home Mortgage Interest section:

Click Federal on the left side-bar

Click Deductions & Credits along the top

Scroll down to “Mortgage Interest and Refinancing (Form 1098)” Click Edit/Add

Scroll down the “Here’s your 1098 info” screen and click Done.

Next screen asks “Do any of these situations apply to you?” Select “Yes, one or all of these situations apply to me.” and Continue.

On the following screen, you will see the “Original amount”.

Enter the amount you can claim as a Home Mortgage Interest deduction in the “Adjusted amount” box. The Adjusted amount cannot be larger than the original amount or you will receive an error when trying to file. Instructions on who needs to adjust interest and how to calculate are available by clicking the blue “Help me figure this out” link.

DESKTOP USERS:

Go into Forms (top right)
Enter the amount on Tax & Int Wks
Mortgage Interest Limited Smart Worksheet section
Line A2

OR

Step by Step

Federal

Deductions & Credits

Mortgage Interest, Refinancing and Insurance Click Update

Click Done

Click Yes, one or both of these situations apply to me. And Continue

Enter the Adjusted amount and Continue