My Form1098 has 0.00 in Box 2 for outstanding mortgage principal but Turbo Tax says it has to have a value, but it doesn't and I can't go forward. What do I do?

Forum|Forum|7 years ago
June 1, 2019
10 replies
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TurboTax Deluxe Windows

KrisD15

Level 15

THIS ANSWER IS FOR TAX YEAR 2018

PLEASE SEE BELOW FOR NEW ANSWER FOR TAX YEAR 2019

If you have a 2018 origination date in box 3 (and you should if you had no balance on 01.01.2018) you can move forward in the program. Leave box 2 blank.

The program won't like box 2 blank, but once you enter a 2018 date in box 3 and click continue, you can move forward and the error is cleared.

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TJM1

Level 2

Just started using T-Tax Deluxe 2019 for Mac and had this issue come up. Solution posted previously does not work. Regardless of loan origination date entered, program will not let me move past this form. Have tried putting .01 in for balance and that doesn't work. If I put in $1 for outstanding balance, it allows me to move on BUT the loan is paid off and balance is actually zero.

JTST

Level 2

I have the same problem. My 1098 for 2019 shows a zero balance in box 2 and I have interest to report. Turbo Tax won't allow me to enter a zero balance in box 2. Not sure what to do...............

If using the standard deduction, maybe I don't need to worry about entering the 1098??

KrisD15

Level 15

FOR TAX YEAR 2019:

If this is a new loan and the Lender left Box 2 blank, enter the amount of the loan on the first day in 2019 when you acquired it.

If the box shows zero (0) you can enter zero(0). Do NOT leave box 2 blank.

The IRS has changed the 1098 this year and looks like it might change again for 2020.

For tax year 2019, Box 2 reports the loan balance as of 01-01-2019 HOWEVER if this is a new loan, enter the beginning balance of the loan.

According to the IRS:

"Enter the amount of outstanding principal on the mortgage as of January 1, 2019. If you originated the mortgage in 2019, enter the mortgage principal as of the date of origination. If you acquired the mortgage in 2019, enter the outstanding mortgage principal as of the date of acquisition."

@JTST

@TJM1

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susankh71

Level 2

My outstanding mortgage principal is LEGITIMATELY $0.00. I paid off my mortgage in 2019 and have some mortgage interest to report. It doesn't let me go on.

DianeC958

Level 12

Sometimes when you change the amount to $1 then you will no longer receive the error and it will not affect your taxes.

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TJM1

Level 2

Here I am 1 year later and have the same problem. They still haven't fixed this! Once again, I paid off a mortgage in 2020, received the 1098 with interest to report but the mortgage balance is zero because the loan is paid off. Turbotax will not let me leave the entry blank or enter an amount less than $1. Why don't they fix this?