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I have a VA loan, refinanced this year and had a VA Funding Fee of $2548.60, cant find a spot for the deduction.

 
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DDollar
Expert Alumni

I have a VA loan, refinanced this year and had a VA Funding Fee of $2548.60, cant find a spot for the deduction.

It is deductible as PMI.  A VA funding fee is deductible whether it is included in the mortgage or paid in full at the closing. A taxpayer whose adjusted gross income is more than $109,000 (or $54,000 if married filing separate) cannot deduct mortgage insurance premiums or VA funding fees.

To enter in TurboTax Online, while working in your return:

  • Click on Search and type PMI in the search window and hit Enter
  • Click on "Jump to PMI"
  • On the "Mortgage deduction summary" click Review for you Mortgage Lender 
  • Enter the amount of the VA funding fee in Box 5 - Mortgage insurance premiums (see Screen Shot below)


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2 Replies
DDollar
Expert Alumni

I have a VA loan, refinanced this year and had a VA Funding Fee of $2548.60, cant find a spot for the deduction.

It is deductible as PMI.  A VA funding fee is deductible whether it is included in the mortgage or paid in full at the closing. A taxpayer whose adjusted gross income is more than $109,000 (or $54,000 if married filing separate) cannot deduct mortgage insurance premiums or VA funding fees.

To enter in TurboTax Online, while working in your return:

  • Click on Search and type PMI in the search window and hit Enter
  • Click on "Jump to PMI"
  • On the "Mortgage deduction summary" click Review for you Mortgage Lender 
  • Enter the amount of the VA funding fee in Box 5 - Mortgage insurance premiums (see Screen Shot below)


I have a VA loan, refinanced this year and had a VA Funding Fee of $2548.60, cant find a spot for the deduction.

The VA funding fee is a type of mortgage insurance that is fully deductible in the year you close (subject to income limits).  It is supposed to be on your 1098 for your mortgage, and is entered as part of the 1098 interview for mortgage interest.  If the amount is not on your 1098, you can manually add it in the mortgage interest interview.

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