topic How does Turbo Tax handle points on a refinance? It is not asking about my refinance but not asking about points. in Deductions & credits

How does Turbo Tax handle points on a refinance? It is not asking about my refinance but not asking about points.

johnsonut — Mon, 22 Mar 2021 17:30:06 GMT

Turbo Tax is asking about points on the original loan (there were none) and the nature of my refinance. But it is never asking about the points paid on refinance. When should this information be entered?

Re: How does Turbo Tax handle points on a refinance? It is not asking about my refinance but not ...

RayW7 — Mon, 22 Mar 2021 17:55:24 GMT

As far as filing taxes goes, claiming a tax deduction for mortgage points is a fairly straightforward process. Mortgage points are considered an itemized deduction and are claimed on Schedule A of Form 1040. Here are the specifics:

Usually, your lender will send you Form 1098, showing how much you paid in mortgage points and mortgage interest
Transfer this amount to line 10 of Form 1040 Schedule A
If any of your points were not included on Form 1098, enter the additional amount you paid on line 12 of Form 1040 Schedule A

Points are also known as origination fees. You will need to return to the mortgage interview section of your return. For a quicker method do the following:

Go to Personal
Deductions and Credits
Your Home
Mortgage Interest, Refinancing, and Insurance
follow the prompts to 'Tell us about any points paid to XXXX'
Continue to the next screen to enter the points that were paid

-follow this link for additional information-

Can I deduct mortgage points?

Re: How does Turbo Tax handle points on a refinance? It is not asking about my refinance but not ...

johnsonut — Thu, 25 Mar 2021 16:05:00 GMT

Thanks for the great response. Following your instructions, the only time I get prompted for point is the screen that asks:

Did you pay points in 2018 when you took out the loan?

We paid points when we refinanced, purchased a second home, or opened a home equity loan in 2018.

✓We've already deducted all the points we paid in 2018, or we didn't pay any points.

We did not have points on our original loan. I then get asked:

Was this loan paid off or refinanced with a different lender in 2020?

✓Yes

Finally I get:

Is this loan a home equity line of credit or a loan you've ever refinanced?

We need to know a little about about the history of this loan to see how much interest you can deduct this year. Learn more

✓Yes, this is a loan I've refinanced or a home equity line of credit (HELOC).

No, this is the original loan I used to buy or build my home.

Great. So which type of loan is it?

✓A mortgage loan that I've refinanced

A home equity line of credit (HELOC)

Have you ever pulled cash out from this loan when refinancing it? Learn more

Yes

✓No

Never a mention of points on the new refinanced loan.

Re: How does Turbo Tax handle points on a refinance? It is not asking about my refinance but not ...

johnsonut — Sun, 28 Mar 2021 22:11:58 GMT

I found the answer from googling. https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-my-home-debt/01/1897136

This page mentions what to do:

Points on Loans on New Loans: You will want to enter a separate 1098 to cover these points paid. When prompted, enter 0.00 for Boxes 1, 2, 5, and the Property (real estate) taxes box, and checkbox 7, as you’ve already entered the details on your first 1098. For Box 3, add the date in 2020 when the loan originated.