Adding multiple 1098

Forum|Forum|5 years ago
February 2, 2021
1 reply
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I have two 1098 for my primary. It is because I refied so I am receiving two 1098 from the same bank. When I enter the first 1098 with mortgage interest of $20k, my outstanding mortgage principal of $825k, it says my federal tax due is $4k. When I enter the second 1098 with mortgage interest of $5k, my outstanding mortgage principal of $800k, my federal tax due now increases to $6k. In the past, whenever I enter more mortgage interest (multiple 1098s), I am increasing my deductions, and my federal taxes due will decrease.

It does not make sense that I owe $4k when my mortgage interest is $20k but I owe more, $6k when my mortgage interest is $25k. I put that it is a heloc or refinance, not original mortgage. It asks me if I took out cash and I say no, however, I think there is a glitch because if I go back and say yes, then it will decrease my federal tax due and increase my state refund. If I go back to the screen where it asks me if I took out cash, and this time I say no, then it doesn't change back my refund amount. It appears to be a system glitch.

Something isn't right. I'm going back and playing with it and if I delete the $5k, my state refund will increase by $500. If I add back the $5k, my state refund will decrease by $500. Can someone explain what is going on for TT Premier 2020?

PattiF

Level 15

There is a know problem at this time with this issue.

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause the Home Mortgage Interest to be incorrectly limited.

If you're experiencing the issue above, please go here to receive email notifications when any updates related to this issue become available.

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jyeh74Author

Level 6

TT emailed me today and said that the issue is resolved. They asked me to install the update which I did. I installed the update and tried again. The issue is still there. As I add more 1098, my federal refund decreases. Help!

KKBRODY981

Level 2

You will use the latter date since this is the loan still in effect at the end of the year.

The turbo tax pop up box next to this item says to "finish adding info for boxes 2,3,7, and 11 using the 1098 FOR THE ORIGINAL LOAN." So I would still put the loan origination date of 12/21/2020 instead of 7/1/2019?

It is also stating that I cannot deduct my loan interest because we took cash out to pay off other loans? The majority of the interest ($14,110.44) was paid prior to 12/21/2020 and only $372.57 paid after 12/21/2020. It doesn't make sense to me that we cannot write off what we paid prior to the refinance. If i were to enter these two 1098's separately then would it allow me?