Deductions & credits

Yes. As you are entering the information from your Form 1098 in TurboTax, when you see the question, "Did you pay points in 2024 when you took out the loan?", select "We paid points when we purchased or refinanced to improve our main home in 2024" in order to deduct the points. 

If you instead select "We paid points when we refinanced, purchased a second home, or opened a home equity loan in 2022", TurboTax will set the points up to be amortized.

Please see this tax tips article for more information on deducting points.

Please see IRS Tax Topic 504 for further guidance regarding mortgage points.

Generally, the Internal Revenue Service (IRS) allows you to deduct the full amount of your points in the year you pay them. If the amount you borrow to buy your home exceeds $750,000 million ($1M for mortgages originated before December 15, 2017), you are generally limited on the amount of points that you can deduct. The IRS also imposes the following requirements to deduct mortgage points:

• The mortgage must be used to buy or build your primary residence
• The points must be a percentage of your mortgage amount
• The use of points must be a normal business practice in your area
• The amount of points paid must not be excessive for your area
• You must use cash accounting on your taxes
• The points must not be used for items that are typically stand-alone fees, such as property taxes
• You cannot have borrowed the funds to pay for the points from the mortgage lender or broker
• The amount you pay must be clearly itemized as points on your loan documents

If you aren't able to deduct your points in the year you pay them, you may still qualify to deduct them over the life of the loan.

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