I am entering my remaining balance information. my 1098 says the balance is $126,458.71 but when I check the lender amount on the website is $129,939. Which is correct

Forum|Forum|5 years ago
February 21, 2021
1 reply
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We refinanced with closing costs of 6604.12 does that account for the difference?

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npierson777

It could be the closing cost or the information on the lender's site wasn't up to date. Enter your information as it shown on you Form 1098. As long as it within limitation amount of $750,000 it won't affect your mortgage interest deductions.

bob1025200777Author

Hi , Thanks for answering, It turns out I had a second 1098 form for 2020. We refinanced last August.

Cynthiad66

Please try this

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.

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