Am I eligible for interest paid for both loans? I refinanced my mortgage in 2020. I entered 1098 for the old lender and the new lender. I didn't cash out anything.

Forum|Forum|5 years ago
February 1, 2021
1 reply
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This is for my primary residence and when I enter the old lender (up until 12/28/2020), I get itemized deduction and get a larger refund. I enter the second 1098 and my deduction snaps to standard and is considerably less of a refund. HELP!!!! This is for a 425K loan, home worth 625,000.

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ErnieS0

Yes. You are eligible for interest paid for both loans.

Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the the Home Mortgage Interest to be incorrectly limited.

If you're experiencing the issue above, please go here to receive email notifications when any updates related to this issue become available.

For tax years prior to 2018, the maximum amount of debt eligible for the deduction was $1 million. Beginning in 2018, the maximum amount of debt is limited to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.

Learn more at Deducting Mortgage Interest FAQs

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