Question

I have 3 1098 mortgage interest statements. 2 from one lender and one from another. I refinanced and pulled money out for home remodel.

Forum|Forum|5 years ago
March 1, 2021
1 reply
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directions for entering says to add them all up together for mortgage interest and enter one total for box 2 from original loan amount. This does not make sense as it does not reflect the new loan balance and does not identify the 2 different lender names

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DaveF1006

I have seen numerous instructions about combining 1098T's for the refinanced lenders. If you feel comfortable about adding these individually, then I would encourage you to report these in this individually.

As for recording 0 in Box 2, if you report mortgage balances in Box 2 for the refinance lenders, this may double or triple your mortgage balances thus limit your interest deduction if your balances are beyond the $750K threshold. Report the mortgage balance in the 1098 for the original loan and then 0 for the refinanced 1098's.

My suggestion is to take an average of the three mortgage balances between all three loans. in other words, add the three balances and then divide by three to get an average mortgage balance. Then report this in Box 2 in the original lender's 1098-T.

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