Yes. You can deduct any taxes paid or mortgage interest as part of your closing costs and reported on your HUD-1. Don't change the 1098 entry unless all else fails.
The following lines may vary as the official HUD form changes over time: http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf
- 210 - City/town taxes - Deductible as itemized deduction on Form 1040 schedule A
- 211 - County taxes - Deductible as itemized deduction on Form 1040 schedule A
- 801 - Loan Origination Fee - Deductible as itemized deduction ('points') on Form 1040 schedule A
- 802 - Loan Discount - Deductible as itemized deduction ('points') on Form 1040 schedule A
- 901 - Daily interest charges - Deductible as itemized deduction - this interest typically included in year end interest statement (Form 1098)
- 1004 - Property taxes - Deductible as itemized deduction when paid from escrow; can be added to property taxes on your 1098 to indicate total amount of property tax paid for the year.
You'll enter them in the Deductions & Credits section:
1. Open (continue) your tax return.
(To do this, sign in to TurboTax and click the Take me to my return button.)
2. In the search box, search for "real estate taxes" and then click the "Jump to" link in the search results.
3. Answer Yes to the question Did you pay property or real estate taxes in 2017?
4. Enter your property/real estate taxes on the next screen.
When your property/real estate taxes are included on your 1098, you’ll enter them as part of your Mortgage Interest. But, if they aren’t listed on your 1098, you’ll enter them separately as property/real estate taxes.
