I refinanced my primary home in 2024, and thus received two 1098s, one from before and one from after the refinance. The loan amount is greater than 750K in both cases.
When I enter the information from the first 1098, the amount of taxes I owe decreases due to the mortgage interest deduction. When I enter the second form, however, the amount I owe increases.
Why, when I enter the 1098 from the refinance, does the amount of deductible interest decrease? How can I resolve this? Thank you!
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Thank you, yes, those are the instructions I followed. After selecting 'no' when asked if this is the most recent 1098 form, I select 'Add a Lender' and enter the information for the second loan. The amount of the deduction decreases after I enter the information the second loan.
Did you check the box for 'This loan was paid off or refinanced in 2024' for the first 1098 and check the box 'This loan is a refinance of a previous loan' for the second 1098? Did you take cash out when you refinanced?
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