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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:
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:
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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