I have two different 1098 forms from two different companies. It is only calculating the mortgage interest for one company, not using both. Why doesn't it use both?

[msbrownie9]

I have two 1098 forms and have entered them separately.  My loan was sold to another lender in August 2018.  Turbo Tax is only capturing the loan interest for the first lender and not the second.  Why is that?  

The second company does not have box #2 which is what was the original loan amount as of 1/1/2018 because they didn't get the loan until August.

This impact makes a huge difference in the amount owed/due.

[msbrownie9]

Also, on the 1098 from the second lender there is no information in box #2, do I need a new 1098 or can I use the figures from the document that reflects the beginning amount?

[girlfromla]

I have the same problem.  Just wondering if you have this resolved.  And if you do, do you mind sharing the solution with me?   THanks!!!!

[KrisD · Accepted solution]

Yes, that is the issue. Please enter the transferred amount as the beginning balance for the second lender. Enter 0 (zero) as the ending balance for the first lender. 

The IRS has changed the wording for Box 2 from "Balance on Jan. 1" to "Balance on Jan 1 or on the date the loan became active if it originated in the tax year". 

[msbrownie9]

What if lender 2 does not have a figure in box 2? They show the beginning balance on the document but not in box 2.  Can I still use that 1098 or do I need a new one?

[KrisD]

You can enter it in Box 2, since there is no other place in the program to report it.

[KrisD]

You can ask for a new 1098, but as I say, the IRS had to adjust their wording for Box 2, so the Lender didn't really report the 2018 1098 wrong. The statement/loan document will work, keep a copy with your tax file.

[Anonymous]

Are you saying the 1098s no longer have all the information required to fill out this section of TurboTax? My mortgage was sold and now I have two 1098s and TurboTax is not asking me the questions in a way that helpful. There is no "transferred amount" listed on the 1098.

[girlfromla]

On the other thread on the similar issue.  The Turbo tax answer was telling people just to add the 2 mortgage interest and taxes paid and enter as one entry.  You are telling us different ways.  Which way is accurate?  

[meghashyam-ps]

@TurboTaxKrisD For the second lender, using the transferred balance did not work for me, because in California state deductible home mortgage interest worksheet it took as 2 loans, and the average loan balances for the two loans was summed, causing a huge negative adjustment of mortgage interest, resulting in low tax returns. @girlfromla can you send me the URL for the other thread you are talking about?