I have 2 Mortgage Interest Statements (1098s) for the same property from different lenders. What do I do?

[rshehan]

My wife and I purchased new home and closed on March 1st, 2019, which was sold almost immediately to another lender. I have also received 1098's from both lenders. The 1098 from the lender we pay our mortgage payments too shows the bulk of the Mortgage Interest Received and the Mortgage Insurance Premiums, but the 1098 from the original lender also shows a small amount of Mortgage Interest and Mortgage Insurance Premiums. What I'm confused about is that both 1098's show the same Outstanding Mortgage Principal and the same Mortgage Origination Date. Do I still add both lenders in, even though some of the information is the same on both? Does it matter which lender I add first?

Many thanks in advance.

[DianeC958]

Yes you add both lenders so you can claim the interest paid and property taxes paid.

It does not matter which lender you enter first.

In box 2 for both loans the amount should be $0 since you did not have the loans at the beginning of the year.

Box 2 asks what the balance due was as of 01/01/2019 since the loads began in 2019 the amount is $0.

[rshehan]

Fantastic, thank you for the answer! Follow up though... So box 2 on both of the 1098's shows a dollar amount, but in Turbo Tax, I enter $0?? Just want to make sure I understand that part correctly.

[DianeC958]

No, only for the lender that the mortgage was sold to do you enter $0 for Box 2.

The mortgage you had at the beginning of the year the amount in Box 2 would be the amount you still owed on your mortgage.

[dajjs2015]

Ihave 2 1098s from the same mortgage company. Where do I find my MICC or mortgage interest? Do I add both box amounts in box 1?

[KrisD15]

To clarify, Why did the same Lender send two 1098 forms?

Was 2024 the first year of the loan and if yes, did you purchase a home in 2024 with this loan and if yes, did you pay points? 

If no, was this a refinanced or HELOC loan? 

[dajjs2015]

I bought the house through vhda in 2019 and I have a 1st and 2nd mortgage that's why I have 2 1098s 

[MonikaK1]

Since you have two different loans and one is a second, enter them separately in TurboTax. Your answers to the interview questions may be different for the second mortgage; for example, if you used the proceeds other than to purchase or improve your home.

Please see this article and this one for more information on home mortgages. 

@dajjs2015 

[dajjs2015]

I must not be wording it correctly. On form 8396 where it asks for my certificate information. Box one asks for the interest. Is that the same as box one on 1098 and if so do I add them together because there is only one form 8396

[BrittanyS]

Yes, box 1 is for the interest paid not including points from box 1 on the 1098.  You will not add them together.  If you have multiple 1098's, you will enter each 1098 individually in TurboTax.  If you are using TurboTax Desktop, switch to Step by Step and enter all the information for the first 1098.  Once entered and you are back to the summary screen, select to enter another lender.  For more information, see the link below:

• How do I handle multiple 1098 mortgage interest forms?

@dajjs2015 

[dajjs2015]

Yes I know this and I entered them seperately. I am asking about the one form of 8396 which is your MICC form. For line 1 do I add the 2 1098 line 1s together and put that figure in line 1 on the 8396

[BrittanyS]

You would only enter the interest for the mortgage that you have the certificate for.  If you have multiple certificates, they would need to be entered separately.  Once you have entered the value for one certificate, you will have the option to add another just as you did with the mortgage interest.  When entering the Mortgage Interest Credit, you will need to answer the question, "Did you get more than one certificate" as yes.  See screenshot listed below:

  @dajjs2015 

[dajjs2015]

No I only have one certificate and I have a first and second mortgage on the same property. So to find my interrest do I add the two 1098s line 1 together and use that for my MICC 8396?

[AmyC]

Yes, normally.  See page 2  About Form 8396, Mortgage Interest Credit | IRS to verify your full amount qualifies. You may have a carryover from last year as well. Great job keeping up with this unusual break!

 To enter your Mortgage Credit Certificate in TurboTax is a 2 step process. Enter the mortgage interest then enter the Mortgage Interest Credit Certificate.

Step 1 Enter the Mortgage Interest

1. Select the Federal Taxes tab
2. Select Deductions and Credits
3. Select I’ll choose what I work on button
4. Scroll down to  Your Home section and 
5. Select Mortgage Interest
6. Enter Mortgage Lender and continue through the screens answering the mortgage interest questions.
7. When you return to the Home Loan  Deduction Summary  you will have the option to add additional loans if needed, with the blue Add Another Lender button. Enter all mortgage interest.
8. Done

Step 2 Enter the Mortgage Credit Certificate

1. In Federal, Deductions and Credits
2. Scroll down to the Your Home section  
3. Select Mortgage Interest Credit Certificate start/ update
4. Answer Yes to “Do You Have a Mortgage Credit Certificate”
5. Continue to the “Enter Mortgage Interest Credit Info” screen
6. Enter the information from your certificate. For the mortgage interest field, only enter mortgage interest that was for the loan covered by your certificate (do not use interest from other loans) and press Continue
7. If you have a carryover of this credit from previous years, answer Yes on the “Mortgage Credit Carryover” screen, then enter your carryover information from the last three years

If you itemize your deductions on Schedule A, you must reduce the amount of home mortgage interest you would otherwise deduct on Schedule A by the amount on Form 8396 - TurboTax will deduct the proper amount for you.

@dajjs2015 

[Carl]

Yes, you enter zero because the program is asking you what the outstanding balance was on Jan 1st of 2024. Since you took the loan out after Jan 1st, you owed zero on Jan 1st, 2024.