If the points were paid on the purchase of your home, you should definitely amend the return to claim your additional refund(s)!!! You must deduct them in the year they were paid.
However, if the points were paid on a refi, the points are amortized over the life of the loan, usually 30 years. In some cases this is a very small annual deduction, resulting in an even smaller reduction of taxes.
For example, if you paid $3,000 of points for a refi on a 30-year loan, the deduction would only be $100/year, so your tax savings is likely $15-25/year (Fed). And if you didn't refi until Oct. 1st, you would only get 1/4 of this amount this year (amortization is monthly). You could start amortizing the points next year if the amount of refunds you would get this year are not worth filing an amended return for this year. You would forego the points you could have amortized this year in that case.
Also, if you refinance again, you can write off the remainder of the points from your previous refi at that time. This can be an overlooked but valuable deduction.
If you paid the points on the purchase of your home, however, the tax savings could be significant.
Paying $3,000 of points would likely save you $450-750 on your Federal taxes if you're in a 15% or 25% tax bracket (more or less if you're in a different tax bracket). Plus whatever tax savings results on your State taxes. It doesn't matter if you purchased in January or December when deducting the points on the purchase of your home. But you must take it in the same year as the points were paid. So do the amendment and take it!!!
Hope this helps!
