topic Outstanding Balance for original mortgage which replaced with refinanced mortage in Deductions & credits

Outstanding Balance for original mortgage which replaced with refinanced mortage

gaudipak — Thu, 30 Jan 2020 21:31:09 GMT

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?

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

JulieS — Thu, 30 Jan 2020 22:52:43 GMT

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.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

gaudipak — Thu, 30 Jan 2020 22:56:35 GMT

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.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

JulieS — Thu, 30 Jan 2020 23:01:33 GMT

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

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

gaudipak — Fri, 31 Jan 2020 04:14:45 GMT

I deleted all entries for old mortgage and refinanced mortgage and re-entered both of them. But, such a question never came up. Since sum of both(old and new) balance is about 1.2M which is doubled, it keeps making an error.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

Cheesy — Mon, 03 Feb 2020 14:19:33 GMT

I have the same issue. I have two 1098s because my mortgage was sold to another lender. I answered NO to the refinancing question as the loan wasn't refinanced or paid off by me. Now my mortgage balance is doubled. I tried deleting the entries and doing it again and still get the same issue.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

KrisD15 — Mon, 03 Feb 2020 21:53:04 GMT

Please re-enter the 1098's and enter zero for box 2 for the original Lender's 1098.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

smnovots — Tue, 04 Feb 2020 02:18:53 GMT

TT will not allow you to enter "0" in box 2. This goes back to original question of entering $1 just to get out of the screen.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

KrisD15 — Tue, 04 Feb 2020 20:57:48 GMT

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.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

Cheesy — Tue, 18 Feb 2020 14:39:08 GMT

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.

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

Chessyb — Thu, 27 Feb 2020 15:50:42 GMT

I have the EXACT same situation....

Re: Outstanding Balance for original mortgage which replaced with refinanced mortage

KrisD15 — Fri, 28 Feb 2020 22:17:04 GMT

Do not alter the 1098. Enter the 1098(s) as reported. Box 2 should not be blank. Box 2 is the balance of the loan on 01-01-2019 OR the balance on the day the loan was taken out in 2019. Answer the interview questions carefully.

If you get an error concerning the balance, please follow these directions:

ONLINE USERS:

Please go back to the Home Mortgage Interest section:

Click Federal on the left side-bar

Click Deductions & Credits along the top

Scroll down to “Mortgage Interest and Refinancing (Form 1098)” Click Edit/Add

Scroll down the “Here’s your 1098 info” screen and click Done.

Next screen asks “Do any of these situations apply to you?” Select “Yes, one or all of these situations apply to me.” and Continue.

On the following screen, you will see the “Original amount”.

Enter the amount you can claim as a Home Mortgage Interest deduction in the “Adjusted amount” box. The Adjusted amount cannot be larger than the original amount or you will receive an error when trying to file. Instructions on who needs to adjust interest and how to calculate are available by clicking the blue “Help me figure this out” link.

DESKTOP USERS:

Go into Forms (top right)
Enter the amount on Tax & Int Wks
Mortgage Interest Limited Smart Worksheet section
Line A2

Step by Step

Federal

Deductions & Credits

Mortgage Interest, Refinancing and Insurance Click Update

Click Done

Click Yes, one or both of these situations apply to me. And Continue

Enter the Adjusted amount and Continue