That is not the way I interpret the question.
First, the OP does not state where they are reading the question for box 7 ---the actual 1098 form or the TTax screen.
When I input my own 1098 information TTax simply asks IF "Box 7 is checked" --in other words TTax simply asks what did your lien holder enter on the 1098.
For box 7, the check-box means that the property securing the mortgage is the same as "PAYER'S/BORROWER's" address; OR the address is entered in box 8.
Since I LIVE at the address on the 1098 the box is NOT checked.
I live at the property I have my mortgage on. The 1098 I got from the bank only has words in box 7, not a check box. I think I check the box when entering into TurboTax, but I am confused. What do I do?
You should enter in TurboTax exactly what is on the Form 1098. The form has been reported to the IRS as you received it.
Box 7 is checked if the mailing address that is on the Form 1098 is the same as the address of the property that is securing the home mortgage loan. If the box is not checked then the mortgage company should have entered the address in Box 8.
Just to claify...so if Box 7 just refers to box 8, and the address in Box 8 is your primary residence, you check box 7 in TurboTax?
And if you have more than one 1098, and the other one also has no check mark, but refers to Box 8...and that is your OLD address, do you leave Box 7 unchecked for that 1098?
As KurtL1 states above, just enter whatever is on your Form 1098 into TurboTax. There's no need for interpretation -- what you enter into TurboTax should be exactly what's on Form 1098.
Thanks, but the confusion is that Turbo Tax only allows you to check the box, or not
The forms have words (referring to Box 8 )
So it is impossible to enter it exactly as on form
The IRS instruction for box 7 is this: If address of property securing mortgage is the same as PAYER’S/BORROWER’S address, check the box, or enter the address or description in box 8.
I would leave box 7 unchecked (answer N0 to the question) and enter the address in
box 8.
If the address in box 8 is your principal residence or your second home, you can claim mortgage interest reported on your form 1098.
I think the question is:
If I live at the address for the mortgage
AND
Box 7 isn't checked on my 1098
AND
Box 8 is filled with my address
AND
I tell TurboTax that "box 7 isn't checked"
THEN
How does TurboTax know to claim the deduction correctly since it never asks if there is an address in Box 8 and whether it really matches my primary residence?
I'd like to know this as well, TBH. Thanks
Question #7 is confusing to people. The reason it is asked is that you The mortgage origination date reported in new Box 3. New Box 7 asks whether the address of the property securing the mortgage is the same as the borrower's address shown on the form.
The only difference that it makes is that if it is not checked, then the program will ask you an additional question, "is this loan secured by a property of yours." If you say yes, then you will receive the deduction. the program doesn't ask your address matches your primary address.
As you go through the question, it program says,"If your loan is secured, usually on your 1098 there's an address in Box 8 or Box 7 is checked." If Box 7 is not checked, there should be a address in Box 8 of the 1098. Turbo Tax doesn't require you to add this if this is the case but if the IRS questions this, you will a hard copy of the 1098 showing the address in Box 8 if you need proof.
For the people that keep saying: Just do what is on the form, no interpretation needed
The problem is that the 1098 that we receive does not present a checkbox or any checks. All it says is: "7 The address of the property securing the mortgage will be entered in box 8 and may be the same as Payers/borrowers address. See box 8 below"
There are no checkboxes or checks.
And the problem is that TT asks whether box 7 is checked. It's like asking if the box where your social security number is checked or not. And to that I say, uhhh, no, that makes no sense.
Anyhow, DaveF1006 answered the question. Thank you!
So - I refinanced in 2020. I got one 1098 from my original mortgage company and my payer/borrower address is the address of the property securing the mortgage, so you'd think Box 7 would be checked, but it is NOT and the SAME ADDRESS listed on PAYER/BORROWER is typed in Box 8. The second 1098 I received from the refinanced mortgage has Box 7 "checked". I also notice there is a tax implication when I either check or un-check box 7. A bit confused. Any help? @DaveF1006
@lthyen If the property securing the loan is your home, either Box 7 should be checked or the mailing address shown should be the same address as the property. This comes into play when you have a 1098 for a Rental Property, for example, or a loan for a home you no longer own.
If your first 1098 has Box 7 unchecked, but the mailing address is your home address, that's fine. If your second 1098 has Box 7 checked, but no mailing address is entered, that's correct too.
Enter your 1098 as received.
Click this link for more info on Box 7 of Mortgage Interest Statement.
This is the best answer & explanation, worked perfectly for me and I got the interest deduction for both my original 1098 home loan and my refinanced 1098 home loan.
I have similar situation, I got three 1098 forms as I did two refinancing on my primary home.
Two of them have Box#7 unchecked and the Third has Box#7 checked.
For the third 1098 entry in TT I tried entering with Box#7 checked and unchecked there is a $100 difference in the tax I owe to state (CA). Looks like the tax treatment by TT is not the same for box checked vs unchecked.
Please clarify
It depends. Box 7 is checked if the mailing address that is on the Form 1098 is the same as the address of the property that is securing the home mortgage loan. That shouldn't have anything to do with the difference in the tax owed to California. I would combine all 1098's into one and leave Box 7 unchecked. When you combine, put the most current mortgage loan amount that is still outstanding. Combine both interest rates into the one statement.
Turbo Tax should revisit this particular UI flow. A lot of us have box 7 unchecked in our 1098 and we freak out when clicking next and seeing our deduction decrease substantially in the estimate (before reaching the follow-up question mentioned by DaveF1006).
Thanks for clarifying DaveF1006
go to the irs site: https://www.irs.gov/pub/irs-pdf/f1098.pdf
it is saying if your mortgage is secured by this house, you would check yes.
Do you live in the property that you received the 1098 for? If not, and the mortgage company had a different address they would check box 7 and enter the property address in box 8.
Your home address is listed under borrowers address. So if it is the same address of the property, there is no need to check box 7.