I've had a HELOC since 2017. I only use the available funds occasionally. At the start of 2022, I had a zero balance (i.e., the entire line of credit was available for use). In August 2022, I used a good chunk of it for a home improvement project. I began paying the balance immediately, and have paid both principal and interest.
I know the interest is deductible because I used it for a substantial home improvement. However, when I try to enter the information from my 1098 into TurboTax, it won't accept it because it says the "Outstanding mortgage principal must have a value." (This is Box 2.) On the 1098, it says the outstanding principal as of 1/1/2022 was zero (which is correct). How do I enter this so that I can deduct the interest I've paid on the HELOC in 2022?
