According to IRS you can deduct late fees on a mortgage as below from the IRS website:
"Late payment charge on mortgage payment.
You can deduct as home mortgage interest a late
payment charge if it was not for a specific service performed in
connection
with your mortgage loan"
http://www.irs.gov/publications/p936/ar02.html
This would be as an addition to your mortgage interest from that lender.
Follow these steps
-
Open (continue) your tax return.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
- In the
search box, search for the exact phrase real estate, taxes (include the comma and space)
and then click the "Jump to" link in the search results.
- Select Edit beside your lender
- Select Continue and answer the questions and hange the figures as necessary
Important - Check the box marked "The interest amount I entered here is different from what's on my 1098."
