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February 26, 2025
Question

I have two 1098 forms due to our loan being sold during 2024. It seems its double counting our tax break. I selected one as the most recent but no change. Any advice?

  • February 26, 2025
  • 1 reply
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    1 reply

    KrisD15
    February 26, 2025

    Here are the steps to take, disregard the information about Points if you did not pay any.

     

    Enter the first (oldest) 1098 and indicated that it was secured by home 
    Select BOTH "new loan with points" (if points were paid) and "bought or improved home in 2024"
    Enter points (if applicable) 
    Select YES "This loan was paid off or refinanced with a different lender in 2024". 
    (NOTE; If you indicate NO to "paid off or refinanced", the program will add the mortgage balances)
    No, not most recent 1098
    "HELOC or refinance?" NO
    Yes, only used on this home
    The points and interest should be added and reported on Schedule A


    Enter the second 1098 
    Yes, secured by home
    Indicate that you bought or improved the home with this loan, but  DO NOT indicate that it was a NEW loan, DO NOT ENTER POINTS A SECOND TIME
    Yes, most recent 1098
    Neither HELOC nor refinance 
    Yes, only used on this home
    DONE


    All interest and points (if applicable) were reported as deductions on Schedule A
    I did get a "Let's Check These Entries" when I ran "Smart Check" where I had to indicate if either loan was a refinance. 
    I selected "Refinance NO"


    The full deduction remained on Schedule A
     

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