When you refinance a mortgage, there is very little you can deduct. But at least you get the lower interest rate!
If you paid points on the refinance, you can amortize them over the life of the loan.
To enter the refinanced mortgage:
- Log into your return
- Click on Federal Taxes
- Click on Deductions and Credits
- Under Your Home, click on the button beside Mortgage Interest, Refinancing, and Insurance (Form 1098)
- If you already have one mortgage lender entered, click on Add a Lender
- Enter your information from the Form 1098.
You will get to a screen titled Did you pay points in 2016 when you took out the loan? (See the screenshot below)
You need to indicate that you paid points on the refinance of your home (the second option)
On the following page, you will be asked for the mortgage date, the life of the refinanced loan, and the amount of points paid. TurboTax will then calculate the amortized amount for you.
