Outstanding Balance for original mortgage which replaced with refinanced mortage

Forum|Forum|6 years ago
January 30, 2020
11 replies
57 views

In Mortgage Interest deduction section, it requests the outstanding balance of mortgage. If the mortgage was refinance in the middle of 2019, the outstanding balance of the original mortgage should be $0. But, Turbotax doesn't let me proceed if I enter $0 in the form. Should I enter $1?

JulieS

Level 15

No, you don't have to lie to get through the section.

If you are entering the information from box 2 of your 1098-INT form, it is asking for your balance as of 1/1/2019. You must have add a balance at the beginning of 2019.

If this is information that comes up a few questions later, did you answer the question, "Was this loan paid off or refinanced with a different lender in 2019?" Yes?

If you can't enter the correct information, you should start at the beginning of the section and review all of your answers.

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gaudipakAuthor

Level 2

Thanks for advice. But, the question for"Was this loan paid off or refinanced with a different lender in 2019?" doesn't come up and it ends up that two mortgage balance from both of original and refinance misleads the double up of mortgage principals.

JulieS

Level 15

You may need to delete your 1098 entries and start over. That question comes up for me every time.

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KrisD15

Level 15

Please follow the instructions below carefully.

It is best (mandatory actually) to delete any 1098 forms first and start over.

If the loan was moved to a different lender in 2019 and you have two 1098's to enter:

First, delete both 1098's if you started entering them. Do NOT try to edit them.

Enter the older loan first, enter box 2 as it is reported,

THERE WILL BE A SCREEN ASKING "WAS THIS LOAN PAID OFF OR SOLD IN 2019?" CLICK "YES"

(this screen will not appear if you go back and edit)

Next, enter the second 1098

If box 2 is blank, enter zero, otherwise enter what is in box 2. DO NOT LEAVE IT BLANK

Continue through the interview questions. Do not select that it is a HELC.

Since you clicked that the first 1098 was paid off or refinanced with a different lender, the mortgage balances (box 2) will not be added together.

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Cheesy

Level 2

Still doesn't work and shows my mortgage balance as double what it is despite deleting everything several times and trying again.

I even deleted the 1098s and ran through to the end conducting both the fed and state review to make sure the issue wasn't there. then i followed the instructions above and am still taken to a Deductible Home Mortgage Interest Worksheet where my mortgage is duplicated.