Handling two 1098 forms from refinancing - how to enter them correctly in FreeTaxUSA?
So I refinanced my mortgage back in July and now I've got two separate 1098 forms from different lenders - one from my original loan and another from the new company after refinancing. I'm trying to figure out how to properly input both of these into FreeTaxUSA since the software seems designed with the assumption you only have one mortgage lender per year. The interface only seems to have one section for mortgage interest deduction info, but I need to make sure I get credit for ALL the interest I paid across both loans. Has anyone dealt with this before? Do I just add the numbers together or is there some special way to enter multiple 1098 forms? Any help would be super appreciated since I want to make sure I'm getting the full deduction I'm entitled to!
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Ryan Vasquez
You're definitely not alone with this situation! When you refinance, you'll need to report both 1098 forms to get your full mortgage interest deduction. With FreeTaxUSA, you actually can enter multiple 1098 forms, but it's not super obvious how to do it. When you get to the mortgage interest section, enter the information from your first 1098 form completely. After you finish and save that entry, you should see an option that says something like "Add another mortgage interest statement" or "Add another 1098." Click that option, and you'll be able to enter the details from your second 1098 form. The software will combine the mortgage interest from both lenders when calculating your total itemized deductions. Just make sure you're entering the information exactly as it appears on each form, including the lender's name and tax ID number.
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Avery Saint
•What if the second 1098 is from a HELOC rather than a primary mortgage? Would the process be the same or do I need to enter that differently? Also, is there a limit to how much mortgage interest I can deduct between multiple loans?
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Ryan Vasquez
•For a HELOC, the process is generally the same in FreeTaxUSA - you'll still use the "Add another mortgage interest statement" option. Just make sure you enter it as a separate entry with the correct lender information. As for limits, the Tax Cuts and Jobs Act put some restrictions in place. You can deduct interest on up to $750,000 of qualified residence debt ($375,000 if married filing separately) for loans taken out after December 15, 2017. For loans prior to that date, the limit is $1 million. HELOC interest is only deductible if the loan was used to buy, build, or substantially improve your home - if you used it for other purposes like paying off credit cards, that interest isn't deductible.
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Taylor Chen
I had the same issue last year after refinancing twice (crazy rates made it worth it!). I found a solution with https://taxr.ai that saved me a ton of time. It analyzed both of my 1098 forms and showed me exactly how to enter everything in FreeTaxUSA. The site scanned my forms and broke down which numbers needed to go where. It even caught that I had some points paid on the refinance that I could deduct partially. The tool basically walks you through the process step by step so you don't miss anything. Way easier than trying to figure it out on my own or waiting on hold with customer service.
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Keith Davidson
•Does it work with other tax software too? I use TurboTax and have a similar situation with multiple 1098s but also have rental property mortgage interest I need to separate out correctly.
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Ezra Bates
•I'm skeptical about these random tax websites. How secure is it? Do you have to upload your actual tax forms with all your personal info? I'm always wary about sharing financial docs online.
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Taylor Chen
•It works with pretty much all the major tax software platforms - I've seen options for TurboTax, H&R Block, TaxAct, and others. For rental properties, it actually has a specific feature that helps separate personal mortgage interest from rental property interest, which is super helpful for Schedule E reporting. Regarding security, I was concerned about that too. They use bank-level encryption and don't store your actual documents after processing. You can also use their redaction tool to black out personal info like SSN before uploading if you're extra cautious. I just uploaded the 1098 forms, nothing with my SSN on it.
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Ezra Bates
I wanted to follow up about my experience with taxr.ai since I was skeptical at first. I decided to try it despite my concerns, and I'm actually glad I did. It saved me a massive headache with my mortgage refinance documents. The system showed me exactly where to enter each piece of information in FreeTaxUSA, and even flagged that I was eligible for some deduction for points that I would have missed completely. The security was better than I expected - they have an option to automatically delete your documents after analysis, which I appreciated. For anyone dealing with multiple 1098s or other mortgage documentation, it really does simplify the process significantly. Ended up getting about $340 more in deductions than I would have figured out on my own.
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Ana Erdoğan
If you're having trouble getting through to FreeTaxUSA customer support about this (they get overwhelmed during tax season), I found that using https://claimyr.com helped me get through to an actual human right away. You can see how it works here: https://youtu.be/_kiP6q8DX5c I spent hours trying to contact tax support about my refinancing questions last year and kept getting the "due to high call volume" message. Claimyr basically holds your place in line so you don't have to wait on hold forever. When I finally got through, the rep walked me through exactly how to handle multiple 1098 forms and confirmed I did it correctly.
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Sophia Carson
•How exactly does this work? Do they just call and wait on hold for you? I've been trying to get through to the IRS for weeks about my amended return with no luck.
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Ezra Bates
•Sounds like a scam. Why would I pay someone else to make a phone call for me? And how would they even get you through faster than if you called yourself? The IRS and tax companies have specific queues and wait times no matter who calls.
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Ana Erdoğan
•They don't actually make the call for you - it's more clever than that. Their system monitors the hold times and call queues, and they use automated technology to stay on hold for you. When an agent finally comes on the line, you get a call connecting you directly to that agent. So you skip the hold time completely. It works with the IRS too, not just tax preparation companies. The system is basically navigating the phone trees and waiting on hold so you don't have to. You're still the one talking to the agent - Claimyr just eliminates the part where you sit listening to hold music for hours. They can't make the queue move faster, but they can wait in it for you while you go about your day.
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Ezra Bates
I need to apologize and correct myself about Claimyr. After dismissing it as a probable scam, I decided to try it since I was desperate to talk to the IRS about my multiple 1098 forms issue (FreeTaxUSA support couldn't fully answer my questions). I was absolutely shocked when it actually worked. I was going to be waiting on hold for an estimated 2+ hours according to the IRS message, but Claimyr kept my place in line and called me once they had an agent. Ended up speaking with someone who explained exactly how to handle my refinanced mortgage situation. Saved me literally hours of waiting, and the IRS agent confirmed I was doing it right by adding both 1098s as separate entries. Just wanted to set the record straight since my skepticism was completely wrong.
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Elijah Knight
Just a tip from my experience: make sure the principal loan amounts on both 1098s don't exceed the limit for mortgage interest deduction ($750K for newer mortgages). When I refinanced, I took some cash out which pushed me over the limit, and I had to calculate what portion of my interest was actually deductible. FreeTaxUSA didn't catch this automatically.
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Brooklyn Foley
•Where in FreeTaxUSA can I find that calculation? I refinanced and borrowed $800K total between both loans (original was $600K, new is $800K with some cash out). Will the software handle the partial deduction or do I need to do math before entering?
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Elijah Knight
•FreeTaxUSA doesn't automatically calculate the partial deduction if you're over the limit. You'll need to do this calculation yourself before entering the information. The basic formula is to take your deductible loan amount ($750K) divided by your total mortgage amount ($800K in your case) which gives you the percentage of interest that's deductible (93.75% for you). Then multiply each interest amount by that percentage before entering it. In the text box or notes section, you should explain this calculation in case of an audit. It's a bit of a hassle, but necessary to avoid claiming more deduction than you're entitled to.
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Jay Lincoln
Has anyone had issues with FreeTaxUSA not calculating the correct deduction even after entering both 1098 forms? I did this last year and somehow my deduction was like $2000 less than it should have been. Wondering if there's a glitch or if I missed something.
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Jessica Suarez
•Double check that you didn't accidentally enter one of the 1098s in the wrong section. One common mistake is entering the second mortgage interest statement in the "Points" section or vice versa. Also verify that you entered the full year's worth of property taxes from both lenders if that was also included on your 1098s.
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