Hi, I had a new loan in 2023 for a primary home. The loan was purchased by another servicer after just one month. So, I have two 1098s for it. Here is the problem: the points I paid were reported on the first 1098. Those points show up in the turbotax software when I enter them, but are not being transferred to the mortgage worksheet line "Total acquisition points from all loans reported on a 1098." I can trick the software and get them to appear on that line if I put them on the most recent loan instead of the original loan, however, then they appear earlier on the mortgage worksheet under "Part 1 - Home Mortgage Loan Information." I feel like this will get flagged by the IRS because it's not on the 1098 that it's now showing under, it's on the original 1098. So, any advice for getting these points included properly?
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Combine the two 1098s into one. The IRS has received a copy of both 1098s and they understand that the points are deductible to you so it's not a mystery. The software just isn't recognizing that it's all the same loan. So create one 1098 with the combined mortgage interest and points. Don't combine the loan balances, just enter the balance from the most recent 1098. Then everything should line up.
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