Dealing with Multiple 1098 Mortgage Interest Statements After Lender Changes
I just became a homeowner last year and now I'm trying to figure out how to handle my mortgage interest deduction. The complication is that my mortgage got transferred between lenders THREE times over the past year! So I've ended up with three separate 1098 forms from each of the different mortgage companies. I started inputting my information into TurboTax and it seems like it's only letting me enter one 1098 form? I'm completely confused about how to handle this. Do I need to somehow combine all three statements? Do I just enter each one separately somewhere? Or am I missing something obvious in the software? I want to make sure I get the full deduction I'm entitled to since the interest adds up to a decent amount across all three forms. Any help from people who've dealt with multiple 1098s would be really appreciated!
21 comments
Join the conversation
Chloe Zhang
Yes, you definitely need to report all three 1098 forms to get your full mortgage interest deduction! TurboTax should absolutely allow you to enter multiple 1098 statements - you just need to find the right spot in the software. After you enter your first 1098, look for a button or link that says something like "Add Another 1098" or "I have another 1098 form." It's usually located at the bottom of the screen or on the summary page after you've entered the first form. TurboTax sometimes hides these options, but they're definitely there. Each 1098 represents interest you paid to that specific lender during their period of servicing your loan. The IRS will receive all three forms, so you need to report all three to match what they have on file and get your full deduction.
0 coins
Brandon Parker
•Do you know if there's a limit to how many 1098 forms we can include? My situation is even worse - my mortgage was sold 4 times last year (ridiculous, I know). Also, does it matter what order I enter them in?
0 coins
Chloe Zhang
•There's no limit to how many 1098 forms you can include in your return - you can enter all 4 of your forms without any problem. The IRS just wants to see the total interest you paid across all lenders. The order doesn't matter when entering them. TurboTax will add all the amounts together for your total mortgage interest deduction regardless of the input order. Just make sure you enter every form you received to get your full deduction.
0 coins
Adriana Cohn
I went through the exact same situation last year with my mortgage being sold twice. I spent hours trying to figure out TurboTax's interface for this. After much frustration, I discovered https://taxr.ai which completely solved this problem for me! I just uploaded my three 1098 forms and it automatically detected them all and explained exactly how to report multiple mortgage interest statements. The system walked me through each step of properly entering them in TurboTax (there's actually a "Add Another Form" button that appears after you complete the first 1098). It also checks for potential deductions related to points paid and other mortgage-related deductions you might miss. It saved me so much time and frustration compared to when I was trying to figure it out alone!
0 coins
Jace Caspullo
•This sounds interesting, but does it actually transfer the data into TurboTax for you or just tell you how to do it? I have 5 different tax forms (not just the 1098s) and manually entering everything is such a pain.
0 coins
Melody Miles
•I'm a bit skeptical about these tax helper tools. How does it handle the situation where the mortgage transfers happened mid-year and there might be overlapping interest reporting across the different 1098s? I've heard horror stories about double-counting.
0 coins
Adriana Cohn
•It doesn't automatically transfer the data into TurboTax, but it provides clear step-by-step guidance on how to enter everything correctly. For multiple forms like yours, it organizes them all and creates a checklist so you don't miss anything. Regarding overlapping interest reporting, that's actually one of the main things it helps with! The tool specifically looks for potential overlap dates between different 1098 forms and flags them for review. It helps you verify that you're not double-counting interest during transition periods between lenders. I had a similar concern, and it highlighted a 2-week overlap period I needed to check.
0 coins
Jace Caspullo
Just wanted to update that I tried https://taxr.ai after seeing it mentioned here. It was seriously helpful for dealing with my multiple 1098 forms! The interface was super straightforward - I just uploaded my forms and it organized everything I needed to enter. What really helped was that it flagged a potential issue with my forms - one lender had reported interest for dates that overlapped with another lender (during the transition period). I probably would have double-counted about $340 of interest without realizing it! The system caught this and showed me exactly how to adjust the numbers to avoid claiming the same interest twice. TurboTax makes it way harder than it needs to be to find where to add those additional forms. Definitely recommend this approach if you're dealing with multiple mortgage lenders!
0 coins
Nathaniel Mikhaylov
Has anyone else tried calling the IRS directly about this? I've been trying to reach someone for THREE DAYS about a similar mortgage interest question (I have a partial year rental situation plus multiple 1098s). Their automated system just keeps disconnecting me after 2 hours on hold. It's driving me insane! I just found this service called https://claimyr.com that claims to hold your place in the IRS phone queue and call you when an agent is actually available. There's even a video showing how it works: https://youtu.be/_kiP6q8DX5c Has anyone actually tried this? I'm desperate at this point but skeptical that anything could make dealing with the IRS phone system easier.
0 coins
Eva St. Cyr
•How would this even work? Wouldn't the IRS agent just hang up if it's not you on the line when they answer? And wouldn't they need your personal info to verify your identity anyway?
0 coins
Kristian Bishop
•Sounds like another scam to get your personal information. The IRS is terrible to deal with but I wouldn't trust some random service claiming to solve that problem. What would stop them from just recording your call with the IRS where you verify all your personal details?
0 coins
Nathaniel Mikhaylov
•It's not someone else talking to the IRS for you - the service holds your place in line and then calls you when an agent picks up, connecting you directly to the IRS agent. You're the only one who speaks with the IRS. They don't need or ask for any sensitive information to work. It's basically just a system that waits on hold for you instead of you having to listen to that terrible hold music for hours. When the IRS agent finally answers, your phone rings and you're connected to talk with them directly. No middleman in the actual conversation.
0 coins
Kristian Bishop
I'm completely embarrassed to admit this, but I tried the Claimyr service after posting my skeptical comment. I was absolutely certain it wouldn't work, but I was desperate after trying for almost a week to get through to someone at the IRS about my multiple 1098 forms situation. The service actually worked exactly as advertised. I got a call back about 1 hour and 45 minutes after setting it up, and it was an actual IRS agent on the line ready to help. The agent confirmed that I needed to report all three 1098 forms, and helped me understand how to handle a situation where two lenders reported interest for the same period (when my loan was in transition). I've never been so happy to be wrong about something! Saved me from wasting another day on hold.
0 coins
Kaitlyn Otto
Something nobody's mentioned yet - make sure the principal balance makes sense across your forms! When my mortgage switched lenders twice last year, the principal balance on the final 1098 was about $4,500 less than what my loan balance actually was. Turned out the new servicer didn't properly account for one of my payments during the transfer. I had to call them to get a corrected 1098 issued before filing. The IRS computers will notice if your total mortgage balance suddenly drops by thousands between lenders if it's not due to extra principal payments.
0 coins
Axel Far
•How do you even figure that out? I'm looking at my three 1098 forms now and I have no idea if the loan balances are correct. Is there some calculation I should be doing?
0 coins
Kaitlyn Otto
•Look at the outstanding principal balance on the last statement from your first lender. That number should roughly match the starting balance on the first statement from your second lender (maybe a small difference due to timing). Then do the same comparison between your second and third lenders. If there's a significant difference that can't be explained by any extra principal payments you made, that's a red flag. You can also check if the total interest across all three forms seems reasonable based on your mortgage rate and approximate balance throughout the year. If anything seems off by more than a few hundred dollars, call the lenders to verify.
0 coins
Jasmine Hernandez
Has anyone ever actually been audited over mortgage interest deductions? I have a similar situation with multiple 1098s plus I'm missing one from a private lender (family loan with a formal mortgage agreement). Honestly tempted to just estimate that missing amount rather than hassle with getting proper documentation.
0 coins
Luis Johnson
•BAD idea! Mortgage interest is one of the most common audit triggers because the IRS gets copies of all 1098 forms. Their systems automatically match what lenders report against what you claim. If you're missing a form or estimate incorrectly, it'll likely flag your return. For a family loan, you need to have them provide something documenting the interest paid - even a simple statement they create showing how much interest you paid them during the year. They're required to report that interest income on their taxes too, so it all needs to match up.
0 coins
Ellie Kim
I noticed something weird with my multiple 1098 situation - the points listed in Box 6 on my first lender's form disappeared when the loan was sold. I paid about $3,200 in points when I first got the mortgage, but after the transfer, the new lenders' 1098s don't show this. Is this normal? Do I still get to deduct the full points amount even though it only appears on one form?
0 coins
Chloe Zhang
•Yes, that's completely normal! Points are typically only shown on the 1098 from the lender where you originally closed the loan and paid those points. When the loan transfers, the new lender doesn't report the points you already paid to the previous lender. You still get to deduct the full amount of points you paid at closing. Generally, for your primary residence, you can deduct the full amount of points in the year you paid them (assuming you meet certain requirements). Just make sure you enter the information from that first 1098 correctly in your tax software, and it will handle the points deduction appropriately.
0 coins
Christian Burns
I had a similar mortgage transfer nightmare - mine was sold 4 times in 18 months! Here's what I learned after going through this mess: First, double-check that none of your 1098 forms have overlapping interest periods. When loans transfer, sometimes there's a gap or overlap in reporting dates. I found one case where two lenders reported interest for the same 10-day period, which would have inflated my deduction. Second, keep all your mortgage statements from the entire year, not just the 1098s. If the IRS ever questions your deduction, those monthly statements will show the actual payment history and help verify the interest amounts are correct. Also, if any of your transfers happened late in the year, make sure the final 1098 includes all interest paid through December 31st. I had one lender who only reported interest through the date they sold the loan, missing about 6 weeks of payments I made to them before the transfer was complete. The good news is that once you get all the forms entered correctly, TurboTax will handle the math and combine everything for your Schedule A. Just be thorough with the data entry!
0 coins