Where do I input my yearend balance on my mortgage (from form 1098)? Loan was originated this year but the return shows original balance and not average

[DaveF1006]

Yes, the lender should have reported what the outstanding mortgage balance was as of 12/31/2024 in Box 2 of the 1098. You can put the amount of the correct outstanding mortgage balance.  Be sure you have documentation proving the correct outstanding mortgage balance in case if questioned by the IRS at a later date.

[witness1260]

Thank you! Box 2 appears to have the balance at origination, not as of 12/31/24.

Below that is a section marked "Principal Reconciliation" that shows the ending balance.

I think for purposes of a interest deduction I need to consider average balance (=beginning + ending / 2). So I need to input both, right? Or just put balance at 12/31/24 as the box 2 number and call it a day?

[AnnetteB6 · Accepted solution]

Enter the Form 1098 information just as you received it.  With a new mortgage, box 2 will show the amount at the origination of the loan.  Then, if your mortgage interest needs to be reduced due to your total outstanding mortgage amount, there will be a follow-up question after all mortgage 1098s have been entered that will ask for the ending balance of your mortgage so that the average balance can be calculated.

@witness1260 

[witness1260]

Thank you!! I just needed to click one more time past where I was...

@AnnetteB6