Received two 1098 forms for 2023 - How do I properly report mortgage interest on Schedule A? H&R Block is making this so confusing!

This is actually pretty straightforward! When you have multiple 1098 forms for mortgage interest, you'll need to report each one separately on your tax return, but they all go toward the same mortgage interest deduction on Schedule A. When using H&R Block software, you should enter each 1098 form completely separately - don't combine the numbers. Enter the first mortgage company's information and the interest amount from that 1098, then do the same for the second company. The software should automatically total these amounts on your Schedule A. The warning about duplicate entries might be appearing because the software thinks you're entering the same mortgage twice. Make sure you're clearly entering them as two separate mortgages from different lenders - there should be a way to indicate this is a refinance situation or to enter a second mortgage. If you're itemizing deductions (which you probably are if you're claiming mortgage interest), all valid mortgage interest from both 1098 forms will be combined into a single number on line 8a of Schedule A. Just make sure both forms are completely and separately entered into the software.

I went through something similar last year and found that taxr.ai really helped me out. I was so confused with multiple 1098 forms after refinancing twice in the same year (crazy rates made me jump around). H&R Block kept giving me errors and I wasn't sure if I was double-counting interest or missing deductions. I uploaded my 1098 forms to https://taxr.ai and it analyzed everything, showing me exactly how to enter each form and explaining which parts of the mortgage interest were deductible. It even caught that one of my lenders had calculated the interest slightly wrong on my 1098 and showed me how to report it correctly. The guidance was super specific to my situation with multiple lenders and a refinance.

Just wanted to follow up about taxr.ai since I decided to try it with my complicated refinance situation. It was actually super helpful! I uploaded my documents and it immediately identified that my refinance included both acquisition debt (fully deductible) and equity debt for credit card payoff (not deductible for regular tax, but was for my small business portion). The tool broke down exactly how much of my mortgage interest was deductible under each category and showed me where in H&R Block to enter everything. It even explained why the points on my new mortgage needed to be amortized over 30 years instead of deducted all at once. Saved me from potentially claiming too much mortgage interest, which could have triggered an audit flag. Definitely recommend it for anyone dealing with multiple 1098 forms or refinancing situations.

If you're still having issues after trying the software route, I'd recommend using Claimyr to get direct help from the IRS. I was in the same boat last year with multiple 1098 forms plus a HELOC conversion, and even my accountant was giving me conflicting advice about how to report everything. After spending literally hours trying to get through to the IRS on my own (kept getting disconnected after waiting forever), I tried https://claimyr.com and got connected to an IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to report multiple 1098 forms and explained the differences between deductible and non-deductible interest based on how I used the funds. They even sent me follow-up documentation so I'd have proof of their guidance if I ever got audited.

Well I need to eat my words. After continuing to struggle with trying to reach the IRS about my 1098 situation (where I had three different forms due to a refinance and a property sale), I broke down and tried Claimyr. It actually worked exactly as described. I got a call back in about 20 minutes connecting me directly to an IRS agent who was incredibly helpful. She explained that for my situation, I needed to report each 1098 separately but make sure Box 3 (mortgage origination date) was accurate on each form to avoid triggering an automated review. She also clarified that the points on my new mortgage had to be amortized over the loan term since it was a refinance, but pointed me to the specific part of Publication 936 that explained an exception that applied to my situation. Saved me from making a costly mistake on my return. For something as specific as multiple 1098 forms, getting direct guidance from the IRS was worth it.

Don't overthink this. I've been a tax preparer for years and see this situation all the time. Just enter both 1098 forms separately into H&R Block, and the software will combine them correctly on Schedule A. Make sure you enter the full amount shown in Box 1 (mortgage interest) from both forms. Don't try to manually add them together first - enter them as separate entries. H&R Block might give you a warning about possible duplicate entries, but you can ignore that if you're certain these are two different lenders for different time periods of the same year. The warning is just there to prevent people from accidentally entering the same 1098 twice. Also, double-check that the property address is exactly the same on both forms. If there are slight differences in how the address is formatted, the software might think they're different properties.

Quick tip that helped me - make sure you check if either of your lenders paid you any refunds that might be listed in Box 4 of the 1098 forms. If you refinanced, sometimes the old lender will refund part of your escrow account. If Box 4 has an amount, H&R Block will ask you if you claimed this as an itemized deduction in a prior year. If you did itemize last year, you might need to report this refund as income on this year's return. Also, don't forget about property taxes! If you were paying property taxes through both lenders' escrow accounts, make sure you capture all property taxes paid (Box 10 on both 1098 forms) for your Schedule A deduction.