I paid a lender origination fee for the purchase of my primary home in 2022. I received a 1098, it does not include the origination fee, where do I enter it in TurboTax?

[JohnB5677]

Origination fees are commonly referred to as points.  This is pre-paid interest and should be distributed over the life of the loan.

Select Deductions & Credits

1. Scroll to Your Home
2. Select Mortgage Interest and Refinancing (Form 1098)
3. Did you pay any home loans in 2022? - Yes
4. Continue
5. Select your bank, if you select this option, follow the interview
6. or Change how I enter my form
7. Type it by myself
8. Follow the interview

• You will get the question Did you pay points in 2000 when you took out the loan?
• If you’re amortizing the points you paid on your loan, choose I paid points when I refinanced, purchased a second home, or opened a home equity loan...
• The next page is Tell us about the points you paid in 2000
• Enter your origination fee information here.

[gsolague]

Thank you. My 1098 includes the points and I entered it in TurboTax; however, I paid an origination fee on top of the points, listed in my closing statement on a separate line. The origination fee is not included in the 1098. Where do I enter the origination fee from the closing statement in TurboTax? Thank you.

[JohnB5677]

You should combine the two amounts on the form stated above.

You can deduct in the year they're paid. Origination fees and/or points paid on a purchase. The IRS considers “mortgage points” to be charges paid to take out a mortgage. They may include origination fees or discount points and represent a percentage of your loan amount.  Points that don't meet these requirements may be deducted ratably over the life of the loan.

Keep a copy of the 1098 and the closing document with your tax return in the event it is questioned.

Please see: Topic No. 504 Home Mortgage Points

[Mike9241]

not all origination fees are deductible. Only the portion that is a percentage of the loan amount.  the application fee and underwriting fee, if present, and others are not deductible