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htims_tax
New Member

What do I do with the 1098 from my refi company that has nothing in box 2 - outstanding principle, TurboTax is saying that's wrong (needs review)?

I have 3 1098's from where I refi'd my home.  1st from the original bank, 2nd from the refi company (that doesn't actually hold/service any loans), 3rd from the bank that has the loan now.

The one from the refi company only has ~$300 listed as box 1 mortgage interest, everything else is blank, except for the mortgage origination date, my address, etc.  

TurboTax is saying that this needs review because there's nothing in the box 2 - outstanding mortgage principle for the refi 1098.  So what do I do here?
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1 Reply
ToddL99
Expert Alumni

What do I do with the 1098 from my refi company that has nothing in box 2 - outstanding principle, TurboTax is saying that's wrong (needs review)?

Enter "$1" as the Mortgage Loan balance amount. This will not have any effect on your tax calculation and will not generate an error in either TurboTax or with the IRS.

 

From an economic perspective, it is accurate - you owed virtually nothing on this mortgage at the end of 2020. 

  

There are many places in TurboTax where you must make a non-zero entry, primarily to let the program know that you answered the question and that the answer makes some sense.  

  

In this case, entering "$1" tells the program that you didn't forget to answer the question and that you had at least some amount of a mortgage loan balance to justify claiming an interest deduction. 

 

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