I opened a HELOC on 12/20/2021 for the purpose of financing some much-needed home improvements to my primary residence. I did not use any of the available HELOC funds until January 3, 2022. My 2022 Form 1098 for this HELOC has the following entries:
Box 1 = $3965.38
Box 2 = blank
Box 3 = 12/20/2021
Box 8 = my primary residence address
When entering this 1098 into TurboTax, and leaving Box 2 blank as it is on my 1098, TurboTax wants a value in Box 2 other than $0 (blank), even though on January 1, 2022 the HELOC was unused and the balance was $0.
>> My workaround for this TurboTax "glitch" was to enter $1 in TurboTax Box 2 for this 1098. Is this acceptable for IRS filing purposes?
>> In the future, can TurboTax be programmed to handle a situation such as mine (HELOC established in prior tax year, HELOC account $0 balance on January 1 of current tax year, but HELOC used later in that same year for home improvements and therefore generating Mortgage Interest for Box 1 at year's end)? This will certainly happen to me again when I pay down the HELOC balance to $0 and then use the HELOC again in a future year.