topic Is VA funding fee deductible? in State tax filing

Is VA funding fee deductible?

pcboppers2 — Thu, 06 Jun 2019 05:30:24 GMT

Where and how do I enter the points (VA Funding fee for w...

bparks_43 — Thu, 06 Jun 2019 05:30:27 GMT

Where and how do I enter the points (VA Funding fee for when we refinanced our house this past year?

set me up for download VA state

h-hill — Thu, 06 Jun 2019 05:30:30 GMT

set me up for download VA state

The VA Funding fee on the purchase of a personal residenc...

DoninGA — Thu, 06 Jun 2019 05:30:31 GMT

The VA Funding fee on the purchase of a personal residence is entered as an itemized deduction on Form 1040 Schedule A for Mortgage Insurance

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Under Your Home
On Mortgage Insurance, click the start or update button

I believe this answer is wrong as of 2017, since the mort...

lee-mcmillan — Thu, 06 Jun 2019 05:30:33 GMT

I believe this answer is wrong as of 2017, since the mortgage insurance premium deduction went away.

This post was from two years ago. The answer was correct...

DoninGA — Thu, 06 Jun 2019 05:30:34 GMT

This post was from two years ago. The answer was correct for that tax year.

I understand the answer is from two years ago (hence bein...

lee-mcmillan — Thu, 06 Jun 2019 05:30:36 GMT

I understand the answer is from two years ago (hence being marked on the page), but it is worthy to make a note/comment for those filing this year since this is the page it still takes you to without being tax year specific in the original question or your answer.

Can do...There are also many other posts referencing the...

DoninGA — Thu, 06 Jun 2019 05:30:36 GMT

Can do...There are also many other posts referencing the Mortgage Insurance where there are references to the spending bill just passed along with the tax extenders. But not all of the older posts, like this one have got that reference.

The VA Funding Fee deduction expired in 2017, was extende...

cretsbabygirl — Thu, 06 Jun 2019 05:30:42 GMT

The VA Funding Fee deduction expired in 2017, was extended for 2018, but apparently the IRS does not have the proper paperwork (form) for that deduction yet on their books. Enter the amount of your funding fee in box 5 under mortgage deductions in the insurance premiums section. When the IRS is able to process this, Turbo Tax has stated they will email/text notify it's customers who have this deduction entered, but for now left unprocessed.

To the best of my knowledge, as of this date, Congress ha...

DoninGA — Thu, 06 Jun 2019 05:30:42 GMT

To the best of my knowledge, as of this date, Congress has not yet passed any tax bill which extended the Mortgage Insurance deduction for tax year 2018.

Since the spending bill with the tax extenders has just b...

DoninGA — Thu, 06 Jun 2019 05:30:45 GMT

Since the spending bill with the tax extenders has just been passed and signed into law, both the IRS and tax preparation software companies have to change various forms, schedules, worksheets and calculations to conform with the extenders in the bill. It will be several weeks before anything is finalized at the IRS and with the TurboTax software which must also be approved by the IRS after they have completed their own system configurations.

Go to this IRS website for information - https://www.irs.gov/newsroom/irs-statement-on-retroactive-extender-provisions

See this TurboTax support FAQ for information - https://ttlc.intuit.com/questions/4241639-tax-relief-the-bipartisan-budget-act-of-2018

Re: Since the spending bill with the tax extenders has just b...

kevinwcampbell — Mon, 17 Jun 2019 20:51:45 GMT

Any update available on the VA Funding Fee tax deduction?

Re: The VA Funding fee on the purchase of a personal residenc...

Rlhawksnest — Sun, 02 Feb 2020 18:02:52 GMT

Why is not the VA funding fee reflected on the 1098 that you get from the bank that issued the loan

Re: The VA Funding fee on the purchase of a personal residenc...

DoninGA — Sun, 02 Feb 2020 18:07:36 GMT

@Rlhawksnest wrote:

Why is not the VA funding fee reflected on the 1098 that you get from the bank that issued the loan

You will have to contact your lender to see why that was not entered on our Form 1098 box 5 as mortgage insurance.

Re: Is VA funding fee deductible?

dan1523 — Sat, 07 Mar 2020 15:44:44 GMT

How can I deduct VA funding fee on my federal tax.

Re: Is VA funding fee deductible?

MaryK4 — Sat, 07 Mar 2020 18:38:48 GMT

he VA Funding fee on the purchase of a personal residence is considered a type of mortgage insurance.

To enter your VA funding fee please follow these steps:

Click on Federal Taxes > Deductions & Credits
In the Your Home section, click on the Start/Revisit box next to Mortgage Interest, Refinancing, and Insurance.
Enter the VA funding fee in Box 5 - Mortgage insurance premiums.
If you've already entered some mortgage information you will see the Mortgage Deduction summary screen. Click on Edit on the line for the lender.
If you need to enter another loan, click on the Add a lender box.

@dan1523

Re: Is VA funding fee deductible?

perryking — Wed, 22 Jul 2020 19:36:36 GMT

Is the VA Funding fee dedutable for 2020?

If so is it dedutabel for the full amount paid in one yeaR, OR MUST IT be Amortized OVER A FIXED PERIOD OR THE LIFE OF THE LOAN ?

Re: Is VA funding fee deductible?

DoninGA — Wed, 22 Jul 2020 20:05:24 GMT

@perryking wrote:

Is the VA Funding fee dedutable for 2020?

If so is it dedutabel for the full amount paid in one yeaR, OR MUST IT be Amortized OVER A FIXED PERIOD OR THE LIFE OF THE LOAN ?

If the mortgage insurance contract was issued in 2019, the VA funding fee is fully deductible as Mortgage Insurance on the 2019 Schedule A as an itemized deduction.

Re: Is VA funding fee deductible?

rpbestcpa — Fri, 28 May 2021 19:29:52 GMT

Is the Veteran Funding Fee Tax Deductible ?

Re: Is VA funding fee deductible?

DoninGA — Fri, 28 May 2021 19:40:37 GMT

@rpbestcpa wrote:

Is the Veteran Funding Fee Tax Deductible ?

The VA Funding Fee is deductible on Schedule A as an itemized deduction entered for Mortgage Insurance.

These fees can be deducted fully in 2020 if the mortgage insurance contract was issued in 2020.