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Level 1
posted Feb 24, 2021 8:47:30 PM

Refinance my mortgage in 2020 with points, got multiple 1098s how to enter in Turbotax - need help

Hi I need help entering multiple 1098s for my home

 

Bought the home in 2014, mortgage of 652k with  Bank A no points paid. 

In 2020, refinance mortgage of 590k with Bank B and paid points 

Bank B later sold loan to Bank C

 

Now I have 3 1098s how do I enter?

 

  • Enter the 1098 from Bank A as I have done all these years and no change in questions? Fill in the Mortgage interest, outstanding mortgage principle and etc. as stated in 1098? 
  • Enter Bank B 1098 - mortgage interest, outstanding mortgage principal, property taxes and points and mark is as paid off or refinanced with a different lender in 2020? 
  • Bank C 1098 - enter the mortgage interests, leave mortgage principle blank? 

 

 

0 3 1057
3 Replies
Expert Alumni
Feb 24, 2021 9:05:27 PM

Here is the workaround:

 

If you have more than one 1098 form, I will recommend you to combine all 1098 forms and enter as one. I am attaching a TurboTax link for the instructions how to do claim your mortgage interests.  Click here:

 

Multiple Form 1098s

 

For tax years prior to 2018, your mortgage interest deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status). Beginning in 2018, this limit is lowered to $750,000.  For more information about the mortgage interest deductions, click here: Mortgage Interest deduction

Level 1
Feb 24, 2021 9:10:48 PM

if I combine all the 1098s into one. What do I name Mortgage Lender? Put it as Bank A/Bank B/Bank C? 

Level 9
Feb 25, 2021 10:54:37 AM

When you combine multiple 1098s, use the name of the original lender. (Bank A)

Here are instructions:

 

  1. Gather all of your 1098 forms related to your refinance (the form from your original lender and the form from your new lender)
  2. Grab a calculator and add together the box 1 amount from each form. Enter the total in TurboTax as Box 1 Mortgage interest.
  3. Add the Box 5 amount from each form and enter the total as Box 5 Mortgage insurance premiums. (If you weren’t required to pay mortgage interest, these boxes will be blank on your forms and you won’t enter anything.)
  4. Add the property tax paid from each form and enter it in the Property (real estate) taxes box.

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

 

@Kaidai