Did refinance in 2016

[jeffroodhouse]

I did a refinance in 2016 and paid to get a lower rate, need to add % of loan amount somewhere?

[AndreaG · Accepted solution]

Since you paid points to refinance your mortgage, you generally have to take a deduction for the points over the life of the loan, unless you meet specific requirements to deduct them in the year paid.

Please refer to page 7 of pub 936 under the headings, "deduction allowed ratably", "deduction allowed in year paid" "second home", and "refinancing" to review the requirements.  https://www.irs.gov/pub/irs-pdf/p936.pdf

To enter the points you paid for refinancing:

• log in to your Turbo Tax account
• click on "take me to my return"
• click on the "federal taxes" tab
• click on "deductions and credits"
• scroll down to "mortgage interest, refinancing, and insurance" and click "start" or "edit"
• When you get to the screen that says, "did you take out this loan in 2016" answer "yes"
• The next screen says,"did you pay points in 2016 when you took out the loan?" Choose the option that fits your situation.
• The next screen says, "tell us about the points you paid". You will be able to enter the amount you paid for points.