Refinance with different lender for mortgage, do I check "Was this loan paid off or refinanced with a different lender in 2020?" under the NEW lender?

[everest_chen]

I did refinance with new lender in 2020.  With the original bank which I did my first loan, I did not get any point, but with the refinance lender, I did purchase 1 point.

In the section for mortgage, under the new lender which I did refinance with, I see the question " Was this loan paid off or refinanced with a different lender in 2020?"  Should I check it?    Should this question also been listed under my previous lender? I have never seen this question...….

Please help me to identify whether I should check this box on the new lender whom I did refinance with. It will affect me (positively) on the refunds....but I do not want  to cause problem that makes IRS turn to me because I check the wrong box and get more money back......... I rather do it right and do not have IRS come after me.....

Thank you

[DMarkM1]

Yes you should get the question about the loan being refinanced with a different lender for both forms 1098 entries.  To ensure the correct entry you should delete all forms 1098 from TurboTax to start fresh with this section.  Be sure to continue through the interview and "Wrap Up Tax Breaks" to trigger the updates.

Next enter the 1098 for the oldest loan first.  You will indicate that this is the original loan and you did refinance this loan with another lender in 2020 and paid zero points originally.

Then enter the 1098 for the next oldest loan.  You will indicate this is a refinance but you did not refinance this loan with another lender in 2020.  You will indicate you paid points on this loan when you originated it as well.

Again be sure to continue the interview and "Wrap Up Tax Breaks" to trigger the updates.

[everest_chen]

Thanks DMarkM1.

To delete the whole 1098 section.........Let me see how to do it...... Never thought the program can be done this way..... and never thought there is such problem in TurboTax software.......good thing you responded my post.

Much appreciate!