Can i deduct my va funding fee?

Forum|Forum|7 years ago
June 7, 2019
2 replies
38 views

We purchased a home in 2017 and the va funding fee was applied to the loan. Can we deduct this on our returns?

TurboTax Deluxe Online

Opus 17

Level 15

Turbotax was updated to allow the deduction for mortgage insurance premiums as of February 22, 2018. It's included in the entry for mortgage interest.

Remember that the usual rules still apply: there are income limits, and pre-paid lump sum amounts must be spread out over 84 months, you can only deduct the number of months worth that you paid in 2017. (Up front lump sum amounts for the VA funding fee and Rural Housing Authority are fully deductible, and monthly premiums are fully deductible.)

Also, because the deduction expired at the end of 2016 and was not renewed until 2018, many banks did not report mortgage insurance on their 1098 forms. If you don't know your PMI or MIP amount, contact your mortgage lender.

rgwilson9

Level 2

Great, thanks. I amended my federal return and have a follow up question. Does the new amount now showing as the federal return due represent the ADDITIONAL funds I can expect to receive, or does that amount include the funds I have already received from the initial return?