Question

How do I enter my 1098 when i refinanced during the year?

Forum|Forum|5 years ago
May 17, 2021
1 reply
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The help says to combine the 1098s but i refinanced with a different lender. Also I had a home equity loan that was rolled into the new mortgage. It is causing issue with my Federal and California returns

TurboTax Premier Online

DanielV01

Employee

Combine the two documents. For the interest you paid, add the two figures. For the outstanding Mortgage Balance, enter the higher of the two figures, but do not add them together. This should straighten out your Federal and California returns.

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M

mary-heitmannAuthor

What name should I list for the 1098 the old or new lender?

Also, I had a HELOC that was rolled into the refi. Should I combine that 1098 as well?

Does it matter that I used some funds from the refi to fund something other than my house?

DanielV01

Employee

Adjustment. Go ahead and enter them all in separately, but for the second mortgage enter $0 or $1 in the box that asks for outstanding mortgage on January 1. Technically speaking this is not wrong, because the new mortgage was $0 at the start of the year and it is a carryover of the previous mortgage. This will pass the diagnostic.

For the re-fi, as long as all of the funds were based on the value of the home you are okay. However, any interest you pay on a HELOC that is not used on the home is not deductible.

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