Refinance with 2 1098 Forms Follow up Question

[Jack Fu]

Follow the following link  https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-...

I want to know the following questions:

1. Should I check the checkbox under Box1 "The interest amount I entered is different than what's on my 1098" since I add the amount from two 1098 forms.

2.  Which lender name should I use? The orignal lender name or new lender name?

[JohnB5677]

Here is an alternative.

If you've refinanced or had your mortgage the outstanding mortgage taken over, the outstanding mortgage principal listed in both of them on Line 2 on the 1098 will be too large.

When you 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".

In this way you don't have to choose which lender to list.

[ak123]

So finally what is the right way to go:

1. Should we follow the approach where we do enter two 1098's and for the first one we put 0 in line 2 OR

2. Follow this : https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-..., where we sum up box 1 and box 5 and put remaining values from first 1098. If this is the recommended approach then what is the answers for the questions asked in the original post which is

       1. Should I check the checkbox under Box1 "The interest amount I entered is different than what's on my               1098" since I add the amount from two 1098 forms.

        2.  Which lender name should I use? The orignal lender name or new lender name?

[ak123]

If you do enter 0 for the first 1098 as suggested by JohnB5677, then during the review stage, there is an error: "Beginning principal must be entered"

[DaveF1006]

Yes, combine the two 1098's and enter the present mortgage loan balance in Box 2. Do not check the box that mentions "The interest amount I entered is different than what's on my  1098"  As far as the lender, it doesn't matter which lender you list because this information is not shared with the IRS.