Solved

How to enter mortgage company 1098 mortgage interest form?

Forum|Forum|3 years ago
February 14, 2023
1 reply
0 views

I re-financed in 2022(to US Bank) and did a Covid-19 forbearance plan in 2021(Wells Fargo).

I received 3 1098s:

1. Wells Fargo

2. US Bank

3. The Mortgage company I did the refi with in 2022.

The Wells Fargo 1098 is the deferred interest paid, so it's a big amount ~$30k.

The Mortgage company 1098 is for $600. When TurboTax asks if THIS is the most recent of the home loans do I say yes or no? Technically the US Bank 1098 is the the most recent 1098. The mortgage company 1098 I have no idea where the $600 in interest I paid them is coming from.

I'm very confused how to enter these three because TurboTax is also confused asking for original date of the purchase of the home, original balance, when it was paid off etc.

Can anyone provide some guidance? Thank you

Best answer by DMarkM1

First it usually works best if all the 1098's are deleted from TurboTax and start fresh. The steps below will have you delete first. Also keep in mind that as long as the average mortgage balance doesn't exceed $750,000 then your interest deduction is not going to be limited.

Deductions and Credits
I'll choose what I work on (If desktop versions)
Update Mortgage Interest topic
Delete all 1098s
Done
Update the Mortgage interest topic
Yes
Put in oldest loan first
Primary Home
None of the above
Enter form information from the first loan
Continue
No points to deduct (or points as applicable)
No this not the most recent
Answer the Refi questions for this loan (Is this loan original or a refi?) as needed
Continue
Add a lender (1098) the next oldest
Steps 8-14 as above for this loan
No this not the most recent
Yes, this is a refinance
Did you use the proceeds for anything other than paying off the existing loan? Yes or No?
If yes, did you use the proceeds only on the home that secures the loan? Yes or No?
If no, you'll need to enter more details about the use of the loan proceeds including the end of year balance (1st statement 2023) and if you paid this loan off in 2022
Continue
Add a lender (1098) put in the most recent loan
Steps 8-14
Yes this is the most recent
Be sure this was refi. Did you actually go in and sign new loan paperwork or was this loan just transferred/sold to a new servicer?
If loan just changed servicer then box 11 on the 1098 should have a date in it. You would answer this is not a refinance. If it is a refinance then answer those questions as needed (steps 21-23).
Continue
Assuming your deduction was not limited due the average loan amount (less than $750K) then you are done.

DMarkM1Answer

First it usually works best if all the 1098's are deleted from TurboTax and start fresh. The steps below will have you delete first. Also keep in mind that as long as the average mortgage balance doesn't exceed $750,000 then your interest deduction is not going to be limited.

Deductions and Credits
I'll choose what I work on (If desktop versions)
Update Mortgage Interest topic
Delete all 1098s
Done
Update the Mortgage interest topic
Yes
Put in oldest loan first
Primary Home
None of the above
Enter form information from the first loan
Continue
No points to deduct (or points as applicable)
No this not the most recent
Answer the Refi questions for this loan (Is this loan original or a refi?) as needed
Continue
Add a lender (1098) the next oldest
Steps 8-14 as above for this loan
No this not the most recent
Yes, this is a refinance
Did you use the proceeds for anything other than paying off the existing loan? Yes or No?
If yes, did you use the proceeds only on the home that secures the loan? Yes or No?
If no, you'll need to enter more details about the use of the loan proceeds including the end of year balance (1st statement 2023) and if you paid this loan off in 2022
Continue
Add a lender (1098) put in the most recent loan
Steps 8-14
Yes this is the most recent
Be sure this was refi. Did you actually go in and sign new loan paperwork or was this loan just transferred/sold to a new servicer?
If loan just changed servicer then box 11 on the 1098 should have a date in it. You would answer this is not a refinance. If it is a refinance then answer those questions as needed (steps 21-23).
Continue
Assuming your deduction was not limited due the average loan amount (less than $750K) then you are done.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

B

BPD7Author

"If loan just changed servicer then box 11 on the 1098 should have a date in it."

You are correct, the final 1098 with the most recent bank which I now pay my mortgage to, had a date in box 11. So this is not a refi. After entering in the order you specified and entering this final entry as not a re-fi, Turbotax has taken all details with no issues. This makes more sense now. Thank you very much!