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New Member

No Outstanding Mortgage Principal on 1098 Form

My 1098 form for a mortgage on question #2 "No Outstanding Mortgage Principal as of 1/1/2018" is blank.  In TurboTax it will not let me go past that screen without putting in a number.  Is this an error in TurboTax or did the lender make an error?  The lender assumed the load mid year so I'm sure that is why they left the 1/1/2018 question blank because they didn't have the loan on that date.  I'm not sure how to get past this screen in TurboTax.

4 Replies
Level 15

No Outstanding Mortgage Principal on 1098 Form

If the loan was transferred to another bank or lender mid-year, then you should have two 1098's. The one from the old lender should show the 1/1/2018 balance, while the one from the new lender will show the 12/31/2018 balance. The 1/1/2018 balance is absolutely required.

Hopefully you can log on to your mortgage account online to see the payment and balance history and see what the balance was "before" you made that 1/1/2018 payment. All of your payment history "should" have carried over to the new lender since they just assumed an existing loan and you didn't refinance or anything like that.

 

Level 15

No Outstanding Mortgage Principal on 1098 Form

You should be able to enter a zero in that field since you did not have any balance at the beginning of the year. 

Returning Member

No Outstanding Mortgage Principal on 1098 Form

even after entering 0.00 I still see that error and can't pass that screen (I am using MAC 2019 TT)

 

I have my loan service transferred in mid year and at the end of the year I had to refinance the loan totally to a new lender. 

Employee Tax Expert

No Outstanding Mortgage Principal on 1098 Form

FOR TAX YEAR 2019:

 

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."

 

 

@jamiepixo

@kranthikirang

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