Question

Impact of Box 7 on refund amount when checked for Mortgage Interest (1098)

Forum|Forum|5 years ago
February 5, 2021
1 reply
0 views

One of my1098's from lender (refinanced last year so had multiple lenders providing 1098) had Box 7 checked. The other two did not. When Box 7 checked refund amount dropped considerably. Why is this or is this a bug?

TurboTax Basic Windows

C

Cynthiad66

Don't see line 8a on 1098

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file.

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