Unable to select Not a refinance of a previous loan

[kerberos]

Bank A was the original lender of my mortgage. In 2022, Bank A sold my loan to Bank B, and I got 1098s from both.

I fill out Bank A mortgage deduction before Bank B and below are my selections.

I selected NO because I believe Bank B's 1098 is the most recent one.

I selected "This load is neither of these" because I did not do HELOC and it is the original load so it is NOT a refinance of a previous loan.

But after that, there is an error on the form " Home Mortgage Interest Worksheet". The question about if it is a refinance became not checked like below

If I check box No from here, the UI shows differently than I expected.

I believe I should only select the "This loan is a refinance of a previous loan" only for Bank B instead of Bank A.

Please help me!!!

[HopeS]

You'll need to enter both 1098 forms on your tax return separately. You will enter the information on the 1098s exactly as shown.

Enter the original (sold) loan first

1. Sign in to TurboTax and select Pick up where you left off or Review/Edit under Deductions & Credits.
2. Select Show more next to Your Home and Start or Revisit next to Mortgage Interest and Refinancing (Form 1098).
3. Answer Did you pay any home loans in 2022? and Continue.
4. You can either sign in to your financial institution and import your 1098 forms, or select Change how I enter my form.
5. Next, you can either upload a digital copy or Type it in myself.
6. Continue through and be sure to enter this 1098 exactly as it appears.
7. Answer the questions, and when you get to the Let's see if this is the most recent form for this loan screen, answer No to Is 1098 you're working on now the most recent for your loan?
8. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property?
9. Select Continue to be taken back to the Your 1098 info so far screen.

Then enter 1098 for the new loan

1. On the Your 1098 info so far screen, select Add another 1098 and continue through to either import or enter your information manually.
2. Answer the questions accordingly and complete your 1098 info exactly as it appears on your form.
3. On the Let's see if this is the most recent form for this loan screen, answer Yes to Is 1098 you're working on now the most recent for your loan?
4. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property? Even though the loan is with a new lender, it's still considered the original loan for this calculation.
5. When you're all done, you'll see both your forms on the Your 1098 info so far screen. You can Continue through to finish and file your return.

@kerberos 

[Edited 3/13/2023| 2:13PM PST] @kerberos 

[kerberos]

I never saw the question Is this the original loan you used to buy your property?

My Let's get some details about this loan screen looks different than what you shared.

And the last screenshot you shared, I ve never seen.

@HopeS 

[AbrahamT]

Here's the solution, when you get to the screen on the 2nd loan

instead of indicating that this loan is neither of these, just leave it blank. the worksheet will automatically generate a no

2nd 1098 

To get to the screen Lets get some details about this loan, do the following

Mortgage lender

What kind of property do you have

Do any of these situation apply, answer None of the above

Next screen, enter the details from your 1098

then, Is this loan secured by a property of yours

then Tell us about any points paid, say no

next screen, Let's see if this is the most recent form for this loan

then here it is,

And don't enter anything. Leave it blank.

[kerberos]

Thanks for the help!

In the case of a sold loan, should I select This loan is a refinance of a previous loan? in the 2nd 1098?

[HopeS]

No, you would select "Neither of these" since the loan is not a refinanced loan.

You would say "Yes" to have you used the money exclusively on this home. You should also report zero as the ending balance for the loan that was closed. 

@kerberos 

[Edited 3/13/2023| 2:15pm PST] @kerberos 

[kerberos]

Thanks HopeS.

1 more question. After I fillout everything, I can only see the last 1098's paid interest(box 1) on the Deductible Home Mortgage Interest Worksheet, it is much less than what I actual paid. 

So how TT did not sum all 1098 box 1 together.

@HopeS 

[HopeS]

Let's start from the beginning. 

When you refinance or your lender sells your loan, you’ll get 1098s for the original and the new loan. When this happens, we need to know which is the most recent

1. Sign in to TurboTax and select Pick up where you left off or Review/Edit under Deductions & Credits.
2. Select Show more next to Your Home and Start or Revisit next to Mortgage Interest and Refinancing (Form 1098). 
3. Answer Did you pay any home loans in 2022? and Continue.
4. You can either sign in to your financial institution and import your 1098 forms, or select Change how I enter my form.
5. Next, you can either upload a digital copy or Type it in myself.
6. Continue through and be sure to enter this 1098 exactly as it appears.
7. Answer the questions, and when you get to the Let's see if this is the most recent form for this loan screen, answer No to Is 1098 you're working on now the most recent for your loan?
8. On the next Let's get some details about this loan screen, answer "The loan is neither of these."  See 2nd screenshot below:
9. Have you used the money exclusivley on this home? Answer should be "YES"
10. Select Continue to be taken back to the Your 1098 info so far screen.

Repeat the steps for 2nd Form 1098. Once completed you will see both loans on the Mortgage Interest Worksheet. The total of both forms will be on Schedule A.

Screenshot 2 below:

@kerberos