turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Two 1098 interest forms due to refinance, entering second 1098 decreases deductible interest

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!

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
DawnC
Employee Tax Expert

Two 1098 interest forms due to refinance, entering second 1098 decreases deductible interest

Choose your platform below for instructions on how to handle your situation.

 

How do I handle multiple 1098 forms in TurboTax Desktop?

 

How do I handle multiple 1098 mortgage forms in TurboTax Online?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Two 1098 interest forms due to refinance, entering second 1098 decreases deductible interest

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.

Two 1098 interest forms due to refinance, entering second 1098 decreases deductible interest

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?

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question