received two 1098

[Momo48]

Hello all,

I received two 1098 for the same property. They show the same outstanding mortgage principal. This is because the mortgage broker sold my mortgage to another company.

The interest in one slip include the prepaid interest, that the second slip did not include.

Should I add the numbers together when entering the property tax? it seems to behave weirdly when I try to separate it into two entries, even if I select one of them as not the most recent one.

[TeresaM]

You should enter both of them and because the original loan was sold, it is still the original loan and not a refinance.  Enter the points on the original loan.  It sounds as if the property tax is paid from escrow on the mortgage, so you may enter is as it is on the forms. 

Select Yes for the most recent loan (and on the other No)

Select This loan is neither of these for both of the Forms 1098.


If this does not resolve the weirdness, please do let us know more details about which screen or which question seems to not be right and we will be happy to help. 

[Momo48]

On the screen where is says, "we need a bit more information to wrap up this deduction"

It asks me "What was the outstanding loan balance on Janunary 1st, 2023? If you paid this off in 2022 enter the balance on the day you paid it off."

I did not have any final payment on it.

it lists out 3 mortgages that I have

1. Home2's 1098 from the Bank that bought the mortgage from broker

2. Home2's 1098 from mortgage broker

3. Home1's 1098 (this was converted to a rental in July)

I entered the remaining loan balance on #1 of what I have on Jan 1 2023.

#2 I left it as 0 because, that loan was sold to the bank in #1.

#3 I entered the loan balance as is on Jan 1 2023.

It complains that "Outstanding loan balance is missing a value" and highlighted the 0 on #2

[LindaS5247]

When a loan is sold to another lender, you’ll still need to enter each 1098 separately.

Enter the original (sold) loan first

1. Sign in to TurboTax and select Pick up where you left off or Review/Edit under Deductions & Credits.
2. Select Show more next to Your Home and Start or Revisit next to Mortgage Interest and Refinancing (Form 1098).
3. Answer Did you pay any home loans in 2022? and Continue.
4. You can either sign in to your financial institution and import your 1098 forms, or select Change how I enter my form.
5. Next, you can either upload a digital copy or Type it in myself.
6. Continue through and be sure to enter this 1098 exactly as it appears.
7. Answer the questions, and when you get to the Let's see if this is the most recent form for this loan screen, answer No to Is the 1098 you're working on now the most recent for your loan?.
8. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property?
9. Select Continue to be taken back to the Your 1098 info so far screen.

Then enter the 1098 for the new loan

1. On the Your 1098 info so far screen, select Add another 1098 and continue through to either import or enter your information manually.
2. Answer the questions accordingly and complete your 1098 info exactly as it appears on your form.
3. On the Let's see if this is the most recent form for this loan screen, answer Yes to Is the 1098 you're working on now the most recent for your loan?
4. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property? Even though the loan is with a new lender, it's still considered the original loan for this calculation.
5. When you're all done, you'll see both your forms on the Your 1098 info so far screen. You can Continue through to finish and file your return.

[Momo48]

Thanks for the response!

In your first instruction, I'm hung up on this step:

Enter the original (sold) loan first

8.  On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property?

I'm not getting this question at all, on this screen, the question is:

Is this loan a home equity line of credit (HELOC) or a refinance of a previous loan?

- This loan is a home equity line of credit (HELOC).

- This loan is a refinance of a previous loan.

- This loan is neither of these. <<< I selected this one

Actually, there was no way for me to import a lender at all, the option is called "Add a Lender" for me instead of adding 1098. If it makes any difference, I'm using the premier desktop windows app

[LindaS5247]

The first 1098 you enter is your original lender. Answer "Yes" to is this the original loan you used to buy your property.

"NO" it is not a Home Equity Line of Credit or a Refinance.  That would be if you took out a line of credit on your Mortgage or you actually refinanced your mortgage for a lower rate or a longer payment parody to reduce your loan payment for instance.

So, it sounds like you selected the correct one, neither.

Correct, then you would proceed with entering your second Form 1098.

[Momo48]

The first 1098 you enter is your original lender. Answer "Yes" to is this the original loan you used to buy your property.

^^^^^^

Hello Linda, I'm not seeing this question anywhere at all.  Where should I be seeing this? do I need to be in the Form View? I'm using Turbo Tax 2022 premier with the windows program if this helps.

[LindaS5247]

No you are fine. It sounds like you have answered correctly.  I read your comment for some reason to be saying that you had that question in TurboTax, not that it was a quote from my prior comment.  I have a different version and the questions are a little different.  Just answer as you indicated, that it was "neither of these".