turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Deciphering Your Tax Forms on Feb 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cyneswith
New Member

What is the difference between the outstanding mortgage principal and the ending mortgage balance?

I entered the outstanding mortgage *principal* (from box 2 of my 1098), but on the next page, Turbotax asked for the outstanding mortgage *balance*. What's the difference? Nothing on my mortgage statement of 1098 is labeled "outstanding mortgage balance"

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
JulieCo
New Member

What is the difference between the outstanding mortgage principal and the ending mortgage balance?

You are correct that your ending mortgage balance is not reported on your 1098 form.  The box 2 amount of mortgage principal from your 1098 is the mortgage balance from the beginning of the year (Jan 1, 2018).  Therefore, the ending mortgage balance asked for is the balance as of the end of the year or December 31, 2018.  

You will need to find the ending balance either on your mortgage statements or by contacting your mortgage company. 

You are receiving the request to enter your ending mortgage principal balance due to the change in tax law related to the mortgage interest deduction.  There are now different mortgage interest deduction limits based upon when the mortgage was originated and what it was used for, so portions of a mortgage listed may include interest that is not deductible.  Therefore, the ending mortgage balance is needed to determine the deductible portion of the interest being entered. 

Here is more information about the tax law and the provisions for now being able to deduct mortgage interest:

 https://ttlc.intuit.com/replies/3300473


message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question