Since you paid points to refinance your mortgage, you generally have to take a
deduction for the points over the life of the loan, unless you meet specific
requirements to deduct them in the year paid.
Please refer to page 7 of pub 936 under the headings,
"deduction allowed ratably", "deduction allowed in year
paid" "second home", and "refinancing" to review the
requirements. https://www.irs.gov/pub/irs-pdf/p936.pdf
To enter the points you paid for refinancing:
- log in to your Turbo Tax account
- click on "take me to my return"
- click on the "federal taxes" tab
- click on "deductions and credits"
- scroll down to "mortgage interest, refinancing, and insurance" and click "start" or "edit"
- When you get to the screen that says, "did you take out this loan in 2016" answer "yes"
- The next screen says,"did you pay points in 2016 when you took out the loan?" Choose the option that fits your situation.
- The next screen says, "tell us about the points you paid". You will be able to enter the amount you paid for points.
