Problem with multiple 1098's due to refinance

[dina_sm]

I refinance my home twice in 2020 and I have three 1098's for that year. First, I refinanced my loan in 2015, then in February of 2020, and then in September of 2020. My loan amount is currently approx. $450K, so I should be able to deduct all the interest paid in 2020 (sum of interest from the three 1098's). However, the program is limiting my deduction. This problem still exists AFTER I UPGRADED TURBOTAX just now! Please advise. 

[LinaJ2020]

If you have more than one 1098 form, I will recommend you to combine all 1098 forms and enter as one. I am attaching a TurboTax link for the instructions how to do claim your mortgage interests.  Click here:

Multiple Form 1098s

For tax years prior to 2018, your mortgage interest deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status). Beginning in 2018, this limit is lowered to $750,000.  For more information about the mortgage interest deductions, click here: Mortgage Interest deduction

[dina_sm]

Is it legal to combine three 1098's into one? Does IRS allow this? Also, what should I enter as the Outstanding Mortgage Principal (box 2)? Average of three? The instructions you referenced states: 

Next, finish adding info for boxes 2, 3, 7, and 11 using Form 1098 for the original loan.

How can I do this if box 2 is the principal, box 3 is the refinance date?

[AlanT222]

Yes, you can average your 1098's.  It is legal.    

Click here for information on how to combine your 1098's.  

[soonerfan]

Thank you for the response. If we average multiple 1098's, what should we list for the lender's information and TIN boxes? Thanks.

[JotikaT2]

It actually does not matter which one you use.  As long as the the overall total of the mortgage matches the sum of the 1098 forms, you will be fine.  Just retain your supporting documents with your copy of your tax return in case the IRS does ever request support for the deduction claimed on your tax return.

@soonerfan