When filling out your information in TurboTax, locate the “Interest Income” section to enter the mortgage interest received is not the mortgage deduction section like you might be use to. Form 1098, report as income you received because you are now the lender. For a easy to understand guide to how to handle mortgage interest for tax purposes reverse.mortgage/interest-tax-deduction.
It's also recommended to always enter the amounts as shown on the 1098 the same way with nothing omitted/missing.
