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dcbear19
New Member

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Box2 is blank on my Mortgage Interest Statement form 1098 from my mortgage company. The application states that the box must have a value. 

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11 Replies
VinceG
New Member

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

If the boxes are blank on the form with no values, you can leave them blank in TurboTax. You do not have to enter zeroes into these fields.
DawnC0
Intuit Alumni

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Contact the lender/issuer and have them give you the outstanding principal balance.  If you have an online account with the lender, you may be able to find the information in your online account.  

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

I am having the same issue, and my "box 2" is blank because there really is a 0 balance.

Looks like a "glitch" to me.

KrisD15
Expert Alumni

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

If this is a new loan and the Lender left box 2 blank, enter the amount of the loan on the first day in 2019 when you acquired it.

 

The IRS has changed the 1098 this year and looks like it might change again for 2020.

 

For tax year 2019, Box 2 reports the loan balance as of 01-01-2019 HOWEVER if this is a new loan, enter the beginning balance of the loan. 

 

According to the IRS: 

"Enter the amount of outstanding principal on the mortgage as of January 1, 2019. If you originated the mortgage in 2019, enter the mortgage principal as of the date of origination. If you acquired the mortgage in 2019, enter the outstanding mortgage principal as of the date of acquisition."

 

@hdriderdude

@dcbear19

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jlip
New Member

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Thanks.

 

However, this deduction is from a co-op building in NY (I am a "tenant-cooperator", part of an "owners corp").  

 

The outstanding principal was not provided to me.  What should we do?

KrisD15
Expert Alumni

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

The co-op or lender that issued the 1098 will need to give you those numbers. 

According to the IRS:

“To figure how the limits discussed in Part II apply to you, treat your share of the cooperative's debt as debt incurred by you. The cooperative should determine your share of its grandfathered debt, and its home acquisition debt. (Your share of each of these types of debt is equal to the average balance of each debt multiplied by the fraction just given.) After your share of the average balance of each type of debt is determined, you include it with the average balance of that type of debt secured by your stock. “

 

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My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Form 1098 Box 2 for my construction loan is blank.  Although it was originated in 2020, the first draw did not occur till March 2021 where a principal was incurred.  Subsequent draws increased the principal up to the final value in June 2021.  Turbo Tax wont let me leave beginning principal as 0, what should it be reported instead? the 1st draw principal or the final principal value?

MarilynG1
Expert Alumni

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Your Beginning Mortgage Balance on Form 1098 would be the balance as of 01/01/2021.  

 

Per Expert @ToddL99:

 

"Your original principal balance would be the amount you have drawn as of the acquisition date - if that was "0", and the program won't accept it, then round up to "$1".

 

With a construction loan, the lender has committed to lending you a certain sum, but you don't owe that amount until you have drawn it completely down in the process of building your home. You will only pay interest on the amounts you have drawn, not what they have committed to lend you over the course of construction."

 

  

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don122
New Member

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

I had a construction loan originated in 2021, but no interest was paid until 2022. I did pay $2100 interest in 2022 on the construction loan and received a 1098 from that bank. Box 2 on the 1098 for the construction loan is blank because the house was completed and the bank sold the loan to another bank near the end of 2022. I have a 1098 from that bank for interest that was paid in 2022. TurboTax will not accept the 1098 for the construction loan because of box 2 being blank. What do I do??? 

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Try putting a number 1 or a -1 in Box 2 and see what happens. I'm sorry, I didn't mean to tell you input 2,100 there. 2,100 was meant for Box 1. My apologies.

 

 

[EDIT 1/25/2023 11:00 AM PST]

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don122
New Member

My form 1098 Box2 is blank and system will not let me move forward with 0. Error message " Outstanding mortgage principal must have a value". How do I get around it?

Your reply makes no sense.

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