topic My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, there is not a field to enter box 6. Where do I enter this? in Deductions & credits

My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, there is not a field to enter box 6. Where do I enter this?

fitz-david-smith — Tue, 04 Jun 2019 23:04:47 GMT

After you enter your form 1098 Mortgage Interest, continu...

HelenaC — Tue, 04 Jun 2019 23:04:48 GMT

After you enter your form 1098 Mortgage Interest, continue with the interview and you'll get to the screen where you can enter Form 1098 Mortgage Interest Box 6, points.

See the screenshots below.

Related information:

Mortgage Points paid--where do I enter?

wpsweb — Sat, 18 Jan 2020 17:11:30 GMT

There is no Box 6 on the screen to enter my points paid.

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, there is not a field to enter box 6. Where do I enter this?

ldeanok — Sat, 18 Jan 2020 17:19:07 GMT

I have the same question and I went through the whole interview and the only options that came up was "I'm spreading the points over the life of my loan" (I'm not), or "I don't have any points to enter". But I do have points to enter. I click on "continue" then it just takes me through the end of the mortgage section without ever asking about points again. It does say the amount isn't more than the standard deduction (and even with the points, it still wouldn't be), could that be why it never asks me?

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

Irene2805 — Mon, 20 Jan 2020 20:06:54 GMT

In general, points are deductible in the year paid IF you use your loan to "buy or build your main home." There are several "tests" that your loan has to meet in order to be able to deduct the points in the year paid:

Your main home secures your loan (your main home is the one you live in most of the time).
Paying points is an established business practice in the area where the loan was made.
The points paid weren't more than the amount generally charged in that area.
You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them.
The points paid weren't for items that are usually listed separately on the settlement sheet such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes.
The funds you provided at or before closing, including any points the seller paid, were at least as much as the points charged. You can't have borrowed the funds from your lender or mortgage broker in order to pay the points.
You use your loan to buy or build your main home.
The points were computed as a percentage of the principal amount of the mortgage, and
The amount shows clearly as points on your settlement statement.

The rules differ for a refinance. If you use part of the refinanced mortgage proceeds to improve your main home and you meet the requirements listed in IRS Topic Number 504 - Home Mortgage Points, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds.

If you refinanced for some other reason (better interest rate, cash out, etc.) you have to spread the points over the life of the loan.

To return to the mortgage interest section please follow these steps:

Click on Federal > Deductions & Credits.
In the Your Home section, click on the Start/Revisit box next to Mortgage Interest, Refinancing, and Insurance.
If you haven't entered any mortgage information yet, just proceed through the screens, entering the requested information on your mortgage.
If you've already entered information on your mortgage, you will see the Mortgage Deduction summary screen. Click Edit next to your lender.
On the screen, Did you pay points in 2019 when you took out the loan? mark the first radio button If you took out the loan to purchase the home or refinanced to improve your main home.
If you refinanced your mortgage and did not improve the property, mark the second radio button.
On the next screen, enter the amount of points reported to you.
Proceed through the screens, entering the requested information.

For more information, see IRS Publication 936 - Home Mortgage Interest Deduction

@wpsweb @ideanok

Re: Mortgage Points paid--where do I enter?

JulieCBA — Thu, 06 Feb 2020 21:08:28 GMT

We had to delete in the 1098 info we had typed (including the lender name) and start over again. When we did this, BOX 6 was there to enter in the points amount.

Re: Mortgage Points paid--where do I enter?

RBHOO — Mon, 13 Jul 2020 01:36:33 GMT

I am also not seeing a way to enter Box 6 of Form 1096 and have no way to recognized all points at once in yr 2019. I am sure it qualifies. With all points, plus Taxes paid and interest -should put me over the standard deduction - and I have not even entered medical expenses yet. I have deleted the 1098 info and still no luck. How far back did you need to go? From the start at Wages and Income?

Re: Mortgage Points paid--where do I enter?

Critter-3 — Mon, 13 Jul 2020 01:54:43 GMT

Not sure why you are not seeing the points screen ... it comes right after the 1098 screen ... delete the 1098 and try again ...

Re: Mortgage Points paid--where do I enter?

DawnC — Mon, 13 Jul 2020 02:02:27 GMT

You mean Box 6 on Form 1098, not 1096, right? You can enter Box 6 info when you enter the 1098. After you enter the details (except Box 6), the next page asks about points, see image below. When itemizing deductions, remember the there are ceilings and floors for many of the deductions you mentioned. The total of the deductible portion of each must be greater than your standard deduction. To see the details of your itemized deduction amount, see Schedule A.

You can deduct points for your main home, if all of the following conditions apply:

They're discount points (see the definition)
The mortgage is used to buy, build, or improve the home, and the home is the collateral for the loan
Paying mortgage points is a customary practice in your area and the points you paid aren't excessive for your neighborhood
The points were paid directly to the lender, either by you or the seller (no borrowing)
Your down payment, plus any points the seller paid, exceed the points paid amount
You use the cash method of accounting (almost all taxpayers do)
The points are calculated as a percentage of the mortgage principal (not required on home-improvement loans)
The points are clearly itemized on your settlement statement as points (not required on home-improvement loans)

If you meet all the above criteria, you can either deduct all your points in the year you paid them or deduct them in equal increments over the life of the loan. Either way, you'll need to itemize to get the deduction.

The deduction for mortgage interest is capped at $750,000 of debt. Interest on up to $1 million of acquisition debt for loans prior to December 15, 2017 is grandfathered.

Are points deductible on a second home and refinances?

Are points deductible on a rental property?

Related Information:

Re: Mortgage Points paid--where do I enter?

RBHOO — Mon, 13 Jul 2020 03:33:17 GMT

Thank you for the quick response. Sorry first I must clarify two mistakes. 1st yes should be form 1098 box 6. 2nd I did get a field to enter points. It doesn't ask for box6 but it did show up and spread across all years.

Right after question "Tell us about any points you paid to xxxxx" I select "This is a new loan on which I paid points(origination fees) in 2019"=x. But as you clarified these are not 'origination fees' they are discount points.

So I just now went back, deleted the bank name info and restarted by selecting “Visit ALL” button on Federal Taxes>Deductions & Credits Tab.

This time to prove the point I added interest box 1= 10K, Box2 outstanding mortgage principal = 300K; mortgage origination date box 3: 11/1//2019. Taxed paid 10K. then >continue button

This time I entered "I bought or improved my main home with this loan in 2019"=x (instead of the “origination fees” mistake above. With this scenario it does not give me a place to enter points.

yes= secured property of mine

“Is this the original loan you took out to purchase this property” = Yes

Now i get 'congrats, you are getting a 10K reduction for the interest you paid'

Notice it never asked me for my points. my box 1 is not 10k. But in my situation (discount) points should also be included as interest paid to get me a “congrats ”... -but I have no opportunity to enter these discount points.

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, there is not a field to enter box 6. Where do I enter this?

sjroy — Thu, 07 Apr 2022 00:58:19 GMT

Hi,

Did you ever get a straight answer on this? I'm stuck on this - no box 6. Any help is greatly appreciated.

Thank you!

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

JillS56 — Thu, 07 Apr 2022 01:19:41 GMT

If you are using TurboTax desktop after you enter the mortgage interest and property taxes on the screen that says "Let's Get the Details . . ." and you click on continue the next screen asks you about points "Tell Us About Points . . ." If you click on the first box

The next screen will ask you for information about the points

TurboTax Online asks the same questions but the screens look a little different. If you go through the mortgage interest screens you will come to the screen that asks about points.

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

sjroy — Thu, 07 Apr 2022 01:33:21 GMT

Hi,

If I follow your directions the loan points will be amortized. Why is there no option to just input the points without amortizing them?

Thank you

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

DawnC — Thu, 07 Apr 2022 04:46:57 GMT

You can either deduct all your points in the year you paid them or deduct them in equal increments over the life of the loan (amortized) if the loan is for your main home.

On a second home, points can only be deducted over the life of the loan. The same is true for refinances, except in cases where you used a portion of your refinance proceeds to improve your home. In that case, the points related to the home-improvement portion of the loan can be deducted in the year you paid them.

If you refinanced with the same lender, any undeducted points left over from the first mortgage will be deducted over the life of your new loan. But if you refinanced with a new lender, any leftover undeducted points can be deducted in the year of the refinance. See Points FAQ

@sjroy

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

6rs — Thu, 14 Apr 2022 17:58:56 GMT

From TT help screen "Note: if you purchased your home in 2021 or refinanced it to make improvements, we'll deduct all your points on your current tax return rather then amortize them over the life of the loan"

My 1098 shows 12/30/2021 in box 3 (Mortgage origination date) and in box 6: 9points paid on principal residence) in the amount of $4276.43.

TT did the calculation and congratulated me on my $ 1.00 deduction???? A significant difference!

How do I correct this problem in TT's calculation in the next 24 hours?

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

6rs — Thu, 14 Apr 2022 19:13:38 GMT

EDIT for fat fingers no 9 : 9 points paid on principal residence) in the amount of $4276.43.

Re: My form 1098 Box 6 shows points paid, however, when I go to enter in TurboTax deductions, the...

AmyC — Tue, 19 Apr 2022 02:42:36 GMT

It has to be an issue with the two forms and limitations. The worksheets are not a part of the return. You can make one correct entry instead. Your goal is to file an accurate return.

See About Publication 936, Home Mortgage Interest Deduction part II on page 9. Use page 12 to combine all loans. Only one table, table 1, is used for all of your loans in one place. The instructions to go through line by line are after the table. There are examples throughout to help you.

Page 13 has mixed-use mortgages.

@6rs

Re: After you enter your form 1098 Mortgage Interest, continu...

Dmitry1 — Sun, 19 Feb 2023 11:30:22 GMT

I had these two critical issues in TurboTax software regarding points:

1. Box 6 doesn't appear. The app asks about points not reported in 1098 later in time. But they WERE reported in 1098, so it doesn't look right to put them there.

2. The app amortizes the points even when the taxpayer asks not to (by not checking the corresponding checkbox).

I was able to resolve them but making sure that I checked a checkbox saying that I purchased or refinanced a house in the same year. Then, it asked for the points in 1098 and the amortization disappeared.

Re: After you enter your form 1098 Mortgage Interest, continu...

ErnieS0 — Sun, 19 Feb 2023 15:22:15 GMT

Yes. You generally can't deduct the full amount of points in the year paid. Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. See Deduction Allowed Ratably next. If the loan is a home equity, line of credit, or credit card loan and the proceeds from the loan are not used to buy, build, or substantially improve the home, the points are not deductible.

You can fully deduct points in the year paid if you meet all the following tests.

Your loan is secured by your main home. (Your main home is the one you ordinarily live in most of the time.)

Paying points is an established business practice in the area where the loan was made.

The points paid weren't more than the points generally charged in that area.
You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them. Most individuals use this method.
The points weren't paid in place of amounts that are ordinarily stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes.
The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. The funds you provided aren't required to have been applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. You can't have borrowed these funds from your lender or mortgage broker.
You use your loan to buy or build your main home.
The points were figured as a percentage of the principal amount of the mortgage.
The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. The points may be shown as paid from either your funds or the seller's.

Learn more at Points.

@Dmitry1