Amortization of Primary Home Mortgage Points

[Memjewels1]

I took out a mortgage in 2024 on a new home and paid points which are reflected on the 1098 received from mortgage company. Although eligible to deduct all points amount in 2024, I won’t receive full benefit due to my current tax situation and other itemized expenses. How do I enter the points in TurboTax Online so that I claim a prorate amount this year with the unamortized amount carried forward to next year. The mortgage is a 30 year term.  Is this entered as an asset or something or do I have to manually claim the amount in subsequent years?

Thank you 

[DianeW777]

It depends. You have two options, deduct all in the year you paid them for the mortgage on your main home or, If you choose to amortize your points over the life of the loan you would do this manually and remember to include it each year. 

Divide the total points by the number of months in the term of the loan (30 x 12 = total months in the loan term), then multiply that by the number of months the loan was active in 2024. Each year you will take 12 months of points as long as the loan continues. 

Once you make this decision, you must continue to amortize the points over the life of the loan. You don't have the option to deduct the balance in the next tax year. If you change your mind you can always amend your 2024 return if necessary until April 15, 2028.

• Can I deduct mortgage points?