I have a HELOC loan and paid an annual maintenance fee in 2021 for servicing the loan. Can you help me find where to enter that in the software?

[RobertB4444]

Fees associated with HELOCs or refinancing the mortgage on your primary residence are NOT deductible.  The IRS gives you the ability to write off $250,000 in profit when you sell your home but you don't get to deduct much while you own it.

You do get to deduct the interest on your primary residential mortgage, and probably on your HELOC.  You're going to enter your HELOC into a separate entry under the Mortgage Interest section in deductions and credits.  

It will ask you questions about the 1098 that you received and that will help TurboTax determine whether you HELOC is deductible at all.

Here is some more information.

[drositano]

Thanks, yep I’ve already entered the interest.  Was looking for more deductions thanks for the reply.  

[JillS56]

As an additional comment, keep track of these annual maintenance fees.  When you sell your home and you might need additional expenses to help increase the basis in your home and to avoid capital gains on the sale of your primary residence these deductions can be used.

[drositano]

Thanks that’s a great tip I would not have thought about those being considered to add to the basis! 

I had water damage to my home and I’m having to pay draftsmen, designers etc that the insurance hasn’t considered part of what they cover so I also haven’t been able to find any way to itemize those.  

[DawnC]

You want to keep track of all of those costs.   You can't itemize or deduct casualty losses unless the loss is caused by a federally declared disaster or a significant fire.  However, those home improvements may come into play when you sell your home because they're included in your home's adjusted cost basis.   That is your original cost plus:

• The cost of any improvements that added value to your home, prolonged its useful life, or gave it a new or different...
• Any special tax assessments you paid
• Amounts spent after a casualty (a disaster such as a hurricane or tornado) to restore damaged property (insurance reimbursements are subtracted below)

From that upwardly adjusted basis, subtract:

• Certain settlement fees or closing costs
• Depreciation allowed for any business use portion of your home
• Residential energy credits claimed for capital improvements
• Payments received for easements or right-of-ways
• Insurance reimbursements for casualty losses
• Casualty losses (from accidents and natural disasters) that you deducted on your tax return
• Adoption credits or nontaxable adoption assistance payments for improvements added to the basis of your home
• First-time homebuyer credit
• Energy conservation subsidies excluded from your gross income
• Any mortgage debt on your principal residence that was discharged after 2006, if you excluded this amount from your gross income.