I refinanced and have two 1098 forms

[RotorJoe1]

And lastly the smart check says "Deductible Home Mortgage Interest Wks: This form has not been finalized for returns with two or more mortgages and limited mortgage interest.  We expect this form to be available after February 17th.  Something is def not right as I only have one loan

[RaifH]

Even though you have one loan, you have four Form 1098s. That is why you will need the finalized Deductible Home Mortgage Interest Worksheet that is due out on February 17, 2022. 

As for all the questions it is asking about the final loan balance for each loan, TurboTax is using this value to determine the average balance of your loan overall for the year. This affects how much of your mortgage interest is deductible. In your case, each Form 1098 should have an amount in box 2, the Outstanding Mortgage Principal. 

When you refinanced out of your original loan and it is asking about the outstanding loan balance and final loan payment date, you will want to put in the Outstanding Mortgage Principal and Mortgage Origination Date from the refinanced loan. That would be the final loan balance and the ending date of your original loan.

You do the same thing for the period your original refinance company held it until it was sold to another company. Your final outstanding loan balance and final loan payment date would be the Outstanding Mortgage Principal and Mortgage Origination Date of your third Form 1098. Repeat again for the third mortgage that was again sold to the final company in the line.

For the final mortgage, you would leave the final loan payment date line blank since that is your active loan. The outstanding loan balance would be the amount of principal you owe on January 1, 2022. You should be able to get this information from your loan statements. 

@RotorJoe1

[RotorJoe1]

The verbiage on all of these questions are very poor and I'd hope that it can be either simplified or clarified in the future for situations such as mine and others.  I very much appreciate you answering my questions.  I still need a bit of clarification on two points. 

After I've entered all my 1098 information and click done, then it proceeds to ask me when did you buy the home with the loan from bank A.  When did you buy the home with the loan from bank B.  When did you buy the home with the loan from bank C.  You get the idea, so here I've entered the original purchase date on each of these questions and not the mortgage origination date for each. When I input the first 1098 and the others, it had the mortgage origination date listed and I also answered the question that this was the  original loan. Having provided all of this in the 1098s entered I feel as though it shouldn't be asking me for this information again. This is why it's confusing for me and feels like something is wrong. I'm sure it's just my misunderstanding, but this is where the form should better explain what is necessary.  There are no help boxes for my scenario that I can refer to as there is in other areas.  So should the date the home was purchased for each of these banks be the origination date of each bank that was already entered on the 1098?

Also need clarification on the picture attached section.  This is all in the 1098 as well so I don't get why I have to answer these again.  If I'm understanding correctly, bank A, B, and C in the first column would be the outstanding balance in box 2 of my 1099? Box D, in the first column I'd enter the amount on my loan statement from Dec that I've found? As for Column 2 are these loans considered paid off and left blank or do I actually put the last payment I made for each bank A, B, C?

[JillS56]

All of the information used to complete the information on 1098 should be based on what is in 1098.  Whether to enter the origination date or the date you purchased the home.   Are these loans all for the same property and you have more than one mortgage on the property or is each loan for a different property.   

No, the date the home was purchased for each of these banks should not be the origination date of each bank that was already entered on the 1098.

In response to the second paragraph of your question, Column 1 would be the amount that is in Box 2 of the 1098.    Column 2 would be the date you paid the loan off.   If the loan is not paid off, then you need to leave it blank.   For Column 1, Box D, if this is the loan you took out in 2021, this amount would be blank.   This column wants to know the balance of each loan o 1/1/2021.  If Column 2, Box D is the new loan, you would enter the date of the last payment.

Because of the number of 1098s,  TurboTax is just asking additional questions to clarify/confirm that you are entitled to claim all the interest.   The IRS only allows you to claim the interest on two loans (primary residence and secondary home).   If any of the loans are home equity or line of credits, you can only take the interest if the funds were used to make improvements, renovations to your home - the phrase is "buy, build or substantially improve.  

[RotorJoe1]

As stated in my original post it's one home that was refinanced last year then sold a few times.  I only own one home and no money was taken for anything, just a straight refinance for lower interest rate with no points. I have 1098s for each of the banks I paid to.  I will leave the dates for each of the questions on when I bought the home the original purchase date in this case.

Bank D is assumed to be the one that currently holds my mortgage and A would be the original loan from a few years ago.  Column 1 D I still understand it to be what the outstanding balance on january 1 2022 not jan 2021 as it is not paid off. Correct?  D 2 is not paid off so I'd leave it blank?  

I still feel like there's some confusion on both sides here.  Thanks again for the help. 

[MarilynG1]

You should combine all of the 1098s directly related to the refinance and enter it as one 1098.  Any 1098s not directly related to the refinance should get entered separately.

Enter the 1098 for the original loan separately (mortgage balance $0), and combine the three others related to refinancing into one 1098 with the January 1, 2022 mortgage balance. Yes, leave the original purchase date for when you bought the home on the refinance 1098.

Click this link for more info on Multiple 1098s.

[jmellow]

RE: "Even though you have one loan, you have four Form 1098s. That is why you will need the finalized Deductible Home Mortgage Interest Worksheet that is due out on February 17, 2022."

I also need this form and it is February 18, 2022 and this form is still giving the same message to wait until February 17, 2022. What are my options here? Will this form be available any time soon? 

@RaifH 

[RotorJoe1]

Your suggestion to input the original loan's 1098 and then adding the 3 others as a second 1098 might make things simpler.  So the name of the bank on the 3 combined would be the most recent lender and their origination date? Then add the totals from all 3 1098s?  My final 1098 has the origination date from 4/7/2021 and acquisition date 09/01/2021, would these dates remain the same or remove the acquisition date or change it to the first refi lenders date? Why are the experts here giving mixed advice on this section? 

Looks like the section I screenshotted above with the two columns still needs to be filled out when you have two 1098s.  I still don't understand the questioning there.  Is the original loan is considered paid off from the refinance?  Box A1 would be the amount of the refi and A2 is the origination date of the original refi or the date that the most recent bank acquired the loan? So confused...sorry :( 

Is the online version different as I may have read previously here? My partner who doesn't want to use my downloaded version is using the online and entered her 1098s but I told her to hold off filing till we get clarification on this section.  I don't believe she got any of the additional questions that I did after entering her 1098s, but she might not have clicked done to continue her filing.  

[smjcwright]

So I have the same confusion, I bought a house in 2019, refinanced it 2 times in 2021, Jan and Sept....so I have three 1098 INT forms. I listed the three banks separately with their loan balances, except the balance for the  current loan. The total of the three loan balances are over the $750,000 (married-jointly). 

The total of the three 1098's is about $14,000

Should I be combining all the 1098's into one number, or is the way I have done this correct?

I was also waiting for the worksheet to be released 2/27/21

Thank You

[smjcwright]

2/17/2021

[RotorJoe1]

Looks like there's multiple threads on the issue about the worksheet not being available.  I'm in california and it seems that poses some additional issues.  Support must have lost track of this thread with all the other ones on this issue. Still hoping they respond to my above question. I feel like I keep asking the same questions but get different answers or my question is misunderstood.  

[erostratus]

The form is totally broken and was last year, too. Even if you combine all of the refinance 1098s into a single entry, that does not change the fact that Turbo Tax is not *averaging* the loan values throughout the year (as Intuit employees keep stating). No matter what you do, Turbo Tax is summing all of the loan values--both the original loans and the refinanced loans. If you originally had a $500,000 loan and then refinanced in July for $450,000, the loan average should be roughly $475,000. But Turbo Tax is calculating your average loan value at $950,000--the sum (not the average) of the two loans. Lots of people on the forum say this was broken in the 2020 version of the software, too. The error won't impact anyone whose summed mortgages are under $750,000.

The problem we have is that there's nothing wrong with the "worksheet." Even if we get a final form of the worksheet this week, the problem is that Turbo Tax isn't doing the right calculation to put onto the worksheet. I believe this is the first time in 20 years I will have to use different software to finish my return because this calculation is simply broken, and it sounds like it was last year, too.

[doT]

It’s amazing how the ‘experts’ keep regurgitating the same thing over and over and it’s always wrong. I’m sure tons of people have paid more than they needed to in taxes. 

Anyways, I’ve posted the solution to this a few years ago. Don’t add all the 1098 mortgage amounts together. Only use the starting mortgage and ending and add up all the interest and points and whatever else paid. That should work. Just enter it as a single form.  Or you can do it manually in the actual worksheets and use separate 1098s. This is what I’ve done in the past and it’s a giant PIA because TurboTax will tell you there is an error in your forms since you’ll need to override the calculations. 

[RotorJoe1]

What form do I look at to confirm that this is happening? Seems everyone says it's "fixed" but I'm curious about this issue as well.

[MarilynG1]

If you entered two 1098's you will have a Home Mortgage Interest Worksheet for each one.

The amounts then transfer to Schedule A, Line 8a. 

Click this link for more info on Multiple 1098's.