Last year (so the year I'm filing for) my mortgage lender sold my loan to another company, so I ended up with two 1098 forms this year. I put both forms into Turbotax. One has a low mortgage interest amount because it was the old one that got sold in February (let's go with $1000 for the purpose of explaining this) and one has a high mortgage interest amount since it was my lender for the rest of the year (let's say $7000 for the explanation). When I get to the part where it summarizes my deductions and pits itemized vs standard, it only displays the low $1000 low mortgage interest instead of combining them into $8000. And I confirm it does this on the tax forms as well.
How do I get Turbotax to properly combine the two values to put on my itemized deduction?
Enter one form and add the two interest amounts together.
Okay. And that doesn't cause any audit concerns? The forms are from two different companies, that's why I'm hesitant on that.
I would make sure your are entering the two 1098s correctly. Enter both 1098s in succession starting with the mortgage that was sold. Make sure not to check the 'This mortgage was paid off or refinanced in 2023' box. It was sold to another lender, not paid off or refinanced. Check the 'Not the most recent 1098' box.
For the new lender, check the box that indicates this is the most recent 1098.