It is deductible as PMI. A VA funding fee is deductible whether it is included in the mortgage or paid in full at the closing. A taxpayer whose adjusted gross income is more than $109,000 (or $54,000 if married filing separate) cannot deduct mortgage insurance premiums or VA funding fees.
To enter in TurboTax Online, while working in your return:
- Click on Search and type PMI in the search window and hit Enter
- Click on "Jump to PMI"
- On the "Mortgage deduction summary" click Review for you Mortgage Lender
- Enter the amount of the VA funding fee in Box 5 - Mortgage insurance premiums (see Screen Shot below)
