My mortgage, of less than $750,000. was sold by one lender to another during 2023. The terms remain exactly the same. I have two 1098 forms.

[jgeorges45]

Can I combine the interest paid to both lenders? If so, should total interest be listed under the 1098 of the first lender? The second? Do I need to tell Turbotax - or the IRS - that I have two 1098's for the same loan?

[JohnB5677]

Yes, you can combine the Interest.

You should list the interest under the new current mortgage folder. (Yes the second.)

The interview will ask questions that will make both the IRS and TurboTax aware of your mortgage situation.

If your mortgage was sold to another lender, please follow these steps to include it on your tax return.

1. Go to Deductions & Credits section of your return,
2. Scroll down to Your Home and
3. Click Revisit/Start next to Mortgage Interest and Refinancing (Form 1098)
4. Answer the questions and enter the information from your Form 1098s:
   1. 5. Box 1 Mortgage interest - Add the amounts together on both 1098s
   2. Box 2 Outstanding Mortgage Principal - Use the amount reported on your old loan
   3. Box 3 Mortgage Origination Date - Use the original purchase date back in the original year you got the mortgage
   4. Boxes 5 & 6 - Use the combined totals form both 1098s
5. Make sure Box 7 is checked
6. What kind of property is this loan secured by?
7. We didn't pay any points.
8. Yes, to Let's see if this is the most recent form for this loan.
9. No to is this the original loan used to buy your property? 
10. Yes, to Is this loan a HELOC or a refinance? 
11. No to Did you take cash out? (assuming you did not take cash out when you refinanced in 2020)
12. Once you are back in the Home loan deduction summary screen, click Done.
13. NO to Do either of these apply to this loan?
14. Enter the outstanding loan balance on January 1, 2022 in the first field. Leave the second field

If I've misunderstood your question, and this does not completely answer it, please contact us again and provide some additional details.

[jgeorges45]

Thank you!