mortgage was sold to another lender now I have two 1098
my mortgage was sold to another lender and now I have 2 1098, and don't know how to file them. can any help me with this problem?
Answers
-
If you have two 1098 forms, you will enter each one individually in the "Deductions/Credits" section under the "Homeowner Expenses" subheading.
When you enter your 1098 form(s), you will be asked, "Is this Form 1098 for a mortgage that was refinanced or sold to another lender during 2023?" If you select "Yes" to this question, your mortgage balance will be calculated correctly. Which will not require you to adjust your interest expense if your mortgage amount is below the IRS limitation for 2023. You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017. -
I also have two 1098 forms for the same mortgage that was sold in 2023, and I am a bit confused by the wording of the note below the checkbox:
"Is this Form 1098 for a mortgage that was refinanced or sold to another lender during 2023?
If this Form 1098 is from the mortgage you had on January 1, 2023, answer No."Does this mean I only answer Yes on the 1098 from the company that took over the loan, and answer No on the 1098 from the old lender which had the loan in January 1, 2023? Or do I answer Yes for both? Thanks in advance!
-
Correct. Answer YES to the 1098 that was sold and No to the one that was not. Basically, we are trying to help the software determine if your average mortgage balance was over $750,000 and your mortgage interest is limited.
-
I did a refi in 2024 and have 2 1098 forms. I’m getting an error message before finalizing stating I need to input the “Loan Balance as of Jan. 1, 2025” for both 1098’s even though the loan balance is $0.00 (for the refinanced 1098). Not sure how to continue…
-
Thank you for bringing this to our attention. We are looking into any possible errors on this page now.
-
I am having this same issue.
-
Hi!
This should be fix in our next roll out. Try signing back into your account in a few days. You may need to go back to the page where you enter a 0 to enter again, but the alert should be gone. Let us know if you are still having problems.
-
Thank you @kiarab - is there any chance we can ask for the favor of you commenting on this thread when the new release with the fix is pushed out? Since we all get notifications from the thread - that would really help us to know when to try again. Thank you!
-
This has now been fixed. You should be able to enter $0 as the Jan 1, 2025 loan balance of the refinanced loan. Thanks for waiting while we updated our software!
-
Thank you, @kiarab! Much appreciated.
