Two form 1098 - Mortgage Interest Statements

Makkapacka

I purchased a house in 2025 and paid for points on my purchase. My bank immediately sold the mortgage to another company so I received two form 1098 for the year.

Both 1098 forms have the same amount entered in box 2 and in box 6 for points paid on the purchase. Do I enter the amounts in boxes 2 and 6 in only one 1098 when I input it into FreeTaxUSA, or do I put those amounts in both 1098s? If it is only one 1098 should I enter it in the 1098 that I initially got the mortgage from, or the second 1098 that the mortgage was sold to?

Any help is appreciated.

JanaA

Hello Makkapacka! You should enter both 1098 forms separately into FreeTaxUSA, but you're correct to be concerned about duplication. Since both forms show the same amount in Box 6 (points paid on purchase), this is indeed duplicated reporting, and you should only enter the Box 6 amount on one of the forms to avoid double-counting.

For Box 2 (mortgage interest), you'll typically enter the amounts from both forms since each lender is reporting the interest they actually received during the time they serviced your loan.

Here's how to handle this:

1. Enter your first 1098 (from your original lender) with all amounts including Box 6
2. When asked "Is this Form 1098 for a mortgage that was refinanced or sold to another lender during 2025?" select "Yes"
3. Enter your second 1098 (from the company that purchased your mortgage) but enter $0 in Box 6 instead of the duplicated amount
4. When asked the same question for the second form, select "No"

Both entries should have the same purchase date since it's the same property.

If you need to get back to edit these entries, go to Deductions/Credits > Homeowner Expenses.