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I received two Form 1098 from mortgage lender; one shows mortgage interest received from borrower in one amount-total interest paid by borrower, and the second one shows an amount of only 23% of the first-which do I claim on my tax return.
Do you have two mortgages on your home, or did you refinance at some point during the year?
You should be able to deduct the total interest shown on both of those forms, although it is not immediately clear to me why they would have reported this on two separate forms. It might be possible that your original loan was sold to another lender at some point during the year which could also result in two separate 1098 Forms being issued. But whatever the reason, you are allowed to deduct the total amount reported to you on all 1098 Forms that you receive.
Thank you-clarification-could one be for an equity line of credit and the other the actual mortgage?
Yes, most definitely. That is why I asked you if you had two separate loans on the property. A home equity line of credit would be considered a separate loan and the interest would be reported separately from your regular mortgage payments.
Thank you and let me know if you have more questions.