outstanding loan balance missing a value mortgage interest

[normal-TX-guy]

Now that the Mortgage Interest Deduction Form error has been resolved (software update released 2/24/22) it clears the first error many have been dealing with.

However, I could use some guidance.   I have two 1098s (sold one home, bought another).   After I enter both 1098's, TT is asking for clarification about the outstanding loan balance as of 1/1/22.  When I enter "0" since I technically paid it off last year, I get an error "Outstanding Loan Balance is Missing a Value" in red.

If I enter any other number in the field, my refund is reduced. 

Why won't it let me enter zero?   I did not have a loan balance on 1/1/22.

Thanks.

Desktop/Download version.

[Cynthiad66]

@normal-TX-guy -There is an ongoing problem when entering more than one Form 1098 for Mortgage Interest.

Since you have two or more 1098's, you may be unable to finalize the home-mortgage interest worksheet and complete your return due to an ongoing form-availability error.  We’re expecting to resolve this issue by the end of the month. 

Also, you can sign up to be notified. Go to: Why isn't my Deductible Mortgage Interest Worksheet available yet? 

Some customers have reported getting the following Check This Entry error message during the final review or Smart Check.

• "Deductible Home Mortgage Interest Wks: This form has not been finalized for returns with two or more mortgages and limited mortgage interest. We expect this form to be available after February 17th."

You MUST report multiple homes separately.

We apologize for the delay and inconvenience this has caused. Our developers are aware of this message and are working to resolve the problem.

We expect it to be fixed by the end of the month. 

For more information, refer to: What do I do if I have multiple 1098s from refinancing my home debt

[normal-TX-guy]

Thank you @Cynthiad66 .  I had that error you mentioned and have been tracking it for last couple weeks:

• "Deductible Home Mortgage Interest Wks: This form has not been finalized for returns with two or more mortgages and limited mortgage interest. We expect this form to be available after February 17th.".

However, that issue has been resolved as of this morning (2/24/22), with an update.  I no longer receive that error.   I've been following other threads on that topic and everyone is also saying that issue seems to be resolved.

My question is different, it has to do with a different error.   If I have zero balance on Jan. 1 2022, why won't it let me enter 0?

[normal-TX-guy]

Thank you @Cynthiad66 .  I had that error you mentioned (regarding the form available on 2/17) and have been tracking it for last couple weeks.

However, that issue has been resolved as of this morning (2/24/22), with an update.  I no longer receive that error.   I've been following other threads on that topic and everyone is also saying that issue seems to be resolved.

My question is different, it has to do with a different error.   If I have zero balance on Jan. 1 2022, why won't it let me enter 0?

[DianeW777]

It's not clear if you intended to put 2022 or 2021 for your zero balance. To be clear the Form 1098 shows the balance as of January 1, 2021. The IRS is not asking for the amount on January 1, 2022.

If necessary try putting $1 in that slot then let me know if you were able to move forward.

• Box 2. Shows the outstanding principal on the mortgage as of January 1, 2021. If the mortgage originated in 2021, shows the mortgage principal as of the date of origination. If the recipient/lender acquired the loan in 2021, shows the mortgage principal as of the date of acquisition.

[normal-TX-guy]

Thank you.    I think the answer I'm supposed to enter is "if you paid this off in 2021, enter the balance on the day you paid this off in 2021".    It's gives me a much lower refund amount than if I left it 0 or $1.   

Perhaps I'm just confused about the question - I had no outstanding balance as of Jan 1st 2022 so it feels like I should be putting zero.

Here is the screenshot:

[ErnieS0 · Accepted solution]

Yes if you paid off your balance during the year, enter the final balance before the payoff. This probably will give you a lower refund because your mortgage interested may be limited.

To verify this, check your deductible mortgage interest amount on the Deductible Home Mortgage Interest Worksheet.

1. Tap Forms in the top right (next to flags)
2. In the left column find Ded Home Mort and tap
3. Part 2–Deductible Home Mortgage Interest will show the deductible portion

[d_danger7]

I have a similar issue and need some clarity. I had a home in 2021 and I refinanced that home in 2021, I then sold that home and purchased a new home later in 2021. I have put in all the 1098s that I have (3) and it is now asking me for the outstanding balance and the date of final payment for all 3 companies. My questions are: 

1. Is the balance the amount that the new mortgage company paid off when I refinanced?

2. Do I put the date that the loan was paid off by the new mortgage company, or the latest monthly mortgage payment that I personally made?

[RobertB4444]

@d_danger7

1.  The balance - in this case - is the amount that the mortgage had at the end of the year.  In the case of the first two mortgages here that is zero.  So you're only entering the amount of the final mortgage on the new house.

2. Date of final payment on the first two is pretty easy - it's the date of your final payment.  The date of final payment on the third one has not happened yet.

[d_danger7]

It won't let you put $0. It says if it was paid off in 2021 to put in the balance on the day that it was paid off. So I'm assuming that is the balance that the new mortgage company paid when I refinanced?

Also just to confirm the date is when I made my last monthly. Payment or the date that the pay off went through? 

[RobertB4444]

@d_danger7  Final payoff amount then, yes.  And the date that the payoff went through.

[d_danger7]

Appreciate it!