topic Where/how do we enter the prepaid mortgage interest paid on a refinance of principal residence in Deductions & credits

Where/how do we enter the prepaid mortgage interest paid on a refinance of principal residence

willismarkw — Thu, 06 Jun 2019 09:02:42 GMT

Prepaid mortgage interest and property tax held in escrow...

Marketstar — Thu, 06 Jun 2019 09:02:43 GMT

Prepaid mortgage interest and property tax held in escrow is not deductible.

Only pro-rated amounts for interest and property taxes (based on a daily amount from your closing date until your first payment) are deductible.

To enter prepaid mortgage interest

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 Interest, click on the start or update button

On the Let's get the details from your lender 1098 now page, enter prepaid interest in Box #1, Mortgage interest

If applicable, click the The interest amount I entered is different than what's on our 1098 box.

Re: Prepaid mortgage interest and property tax held in escrow...

MPSanchez — Wed, 06 Jan 2021 06:04:44 GMT

Do I enter it separately as it was paid directly to the mortgage lender (Fannie/Freddie) or include as part of the 1098 dollar amount provided by the servicer (who was not yet servicing the loan at that time).

Re: Prepaid mortgage interest and property tax held in escrow...

NCperson — Wed, 06 Jan 2021 13:04:05 GMT

can you further explain what you mean by 'pre paid' interest. the servicer will report all interest on the 1098.,

are you talking about the interest on the closing statement? that should be on the 1098 as well.

if your servicing was sold shortly after closing the loan, each servicer that serviced the loan and collected interest is required to send you a 1098.

please post back