I refinanced at $480,000 mortgage in 2020. I understand I should add the 1098s from the two lenders together to get the correct deduction, but do I enter the 2nd 1098?

[elizabeth-otoole]

Original loan originated 11/9/17.

[JohnB5677]

Yes you should enter both 1098's.  This is an alternative.

If you've refinanced or had your mortgage lender changed, the outstanding mortgage principal listed in the combined total of them on Line 2 of the 1098 will be too large.

When you put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest".

To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Enter both 1098's.

Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal".