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Question

Question regarding 1098 and how to allocate between 2 states

Forum|Forum|1 year ago
March 3, 2025
1 reply
0 views

Question regarding 1098 and how to allocate between 2 states

Went to school in PA, graduated May 2024. Moved June 2024 to MD. 1098 form has a lot of interest listed due to consolidation of loans that happened after moving to MD. I am entering this amount as my understanding is you should enter this amount/match 1098 even if it doesn't reflect "true" amount paid and is based on capitalization/consolidation (please correct if wrong).

My question is how to allocate the deduction/adjustment between the 2 states. School I attended was in PA, but consolidated after moving to MD-- should it all be applied to MD?

Not A Product Question

Employee

You allocate it based on where you were living when the payments were made.

They werent payments though-- they were just the lump sum listed related to interest capitalization due to loan consolidation and applying for PSLF-- amount is like 30k of capitalized interest that occurred all at once when I consolidated

Employee

Q. "consolidated after moving to MD"-- should it all be applied to MD?

A. Yes.