How do I deduct mortgage points in a single year in turbotax?

[dkthomas931]

Turbotax is spreading my points but I qualify to deduct all the points this year.  How do I get Turbotax to do this?

[DawnC]

When you entered your 1098 in TurboTax, did you check the correct boxes on the Tell Us About Any Points, screen?    The mortgage has to be used to buy or improve your home.   There is a question about the loan being secured by the property that must be checked also.  

You can deduct points for your main home, if all the following conditions apply:

• They're discount points (see the definition)
• The mortgage is used to buy, build, or improve the home, and the home is the collateral for the loan
• Paying mortgage points is a customary practice in your area and the points you paid aren't excessive for your neighborhood
• The points were paid directly to the lender, either by you or the seller (no borrowing)
• Your down payment, plus any points the seller paid, exceed the points paid amount
• You use the cash method of accounting (almost all taxpayers do)
• The points are calculated as a percentage of the mortgage principal (not required on home-improvement loans)
• The points are clearly itemized on your settlement statement as points (not required on home-improvement loans)

Deducting Points

[dkthomas931]

Yes I checked the first box.  Seems like there is a significant glitch in TurboTax.

I printed the tax return and checked the Schedule A worksheet.  It is showing the points on line 21 but is not adding it to the interest on line 22. 

[MonikaK1]

If you are looking at the Deductible Home Mortgage Interest Worksheet, and the amount on Line 22 doesn't include points that are showing on Line 21, we can investigate this further.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

If you are using TurboTax Desktop, please comment back and I will give you those instructions.

[dkthomas931]

Please send me instructions for the Home and Business desktop version.

[DianeW777]

Here are the instructions to send a diagnostic file using TurboTax Desktop (all versions).

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

@dkthomas931 

[hccheung]

I'm having the same issue with my desktop version of Turbotax. I qualify to deduct the mortgage points in full for 2023, but Turbotax is forcing me to amortize the points over 30 years.  I'm not sure how to fix this.

[PaulaM]

Check this FAQ to be certain that you meet all of the requirements to deduct the points in full.

[hccheung]

I meet all of the criteria listed on the page.

[zomboo]

In order to deduct all of the points, you need to check the first two boxes on the 'Tell us about your points' page.

Note: To deduct 100% of your 2023 points on this tax return, you must check the box "This is a new loan on which I paid points (origination fees) in 2023" and the box "I bought or improved my main home with this loan in 2023."