I refinanced my mortgage in 2019. TurboTax is throwing an error on my second 1098 when I leave box 2 -outstanding principal blank even tho the loan origin date is May

[KrisD15]

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

First, delete both 1098's if you  started to enter 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)

Continue through the interview

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. 

[questioning77]

@KrisD15 

The instructions in Turbo Tax actually states:

Your outstanding mortgage principal balance is the amount of money you still owe on your home loan.

If you took out the loan after January 1, 2019, then leave this field blank

 Why is that? Zero is a much different answer than blank, I would like an explanation on why I should enter zero?  My 1098 (for the re-fi is in fact blank, however I would assume the value that should go in this block is the principal outstanding balance from the time the loan was acquired?  The outstanding principal balance on the re-fi is actually higher than the outstanding principal balance with the original lender because of the re-fi fees. 

If I am supposed to enter zero, why does Turbo Tax indicate that you should leave it blank? 

You also state not to select that it was a re-fi or heloc, what do i select then as it is not the original loan ? These are my options: 

We need to know a little about about the history of this loan to see how much interest you can deduct this year. 

• Yes, this is a loan I've refinanced or a home equity line of credit (HELOC). 

• No, this is the original loan I used to buy or build my home.

Great. So which type of loan is it?

• A mortgage loan that I've refinanced

• A home equity line of credit (HELOC)

PS Thank you for your help

[DianeC958]

Entering $0 for Box 2 is allowing people to not get an error in filing their return.

The value of box 2 states the value of the loan as of 01/01/2019.  Since the loan started after that there is not a balance for the loan as of that date.

If this loan is a refinance answer the question yes that it is A mortgage loan that I have refinanced.

[Jmkohn]

Hi - I have the same problem, however, when I put in the first 1098/loan information I am not prompted with the question to say that the loan was paid off or refinanced. The loan origination date is 2018, and I refinanced in 2019 (with points).

[KrisD15]

@Jmkohn

When you enter the second (refinanced) 1098, does Box 2 have the amount you financed? (including the payoff for the original mortgage?)