I paid points on a new home loan to a Mortgage Broker, and did NOT receive a 1098. How do I deduct this amount?

[xuzhong884]

On my Closing Disclosures from the Title Company, it shows I paid points to a Mortgage Broker who secured the Lender.  Where do I enter this information?  Also, how about all the other fees paid to the Title Company, like Origination Fees, Disclosure Fees, etc.?

[Marketstar · Accepted solution]

For a new loan or refinance, mortgage interest paid (including origination fee or "points"), real estate taxes, and private mortgage insurance (subject to limits) are deductible.

Enter the above expenses in the following areas:

1.   Mortgage interest paid: Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest, Refinancing, and Insurance

2.   Points (or Loan Origination Fee): Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest and Refinancing, and Insurance- ((See Did you pay points in 2016 when you took out the loan? page)

3.   Real Estate Taxes: Federal Taxes>Deductions &Credits> Your Home>Property Taxes

4.   Mortgage Insurance: Federal Taxes>Deductions &Credits> Your Home> Mortgage Interest, Refinancing, and Insurance

Some of the above expenses may be designated on your HUD-1 settlement statement.

See What Information Do I Need From My HUD Statement

 Closing costs, including the below are not tax deductible but may increase the cost basis of your home which may benefit you in the event of sale.

• Attorney fees in connection with obtaining property

• Commissions

• State stamp taxes and transfer taxes

• Tax service fees

• Title policy fees or title insurance

• Miscellaneous abstracts of title, surveys, recording of deed

• Appraisal Fee

[paulpizz123]

I had a mortgage and a HELOC in 2020 and reported interest paid from a 1098 form.

I also refinanced both loans into a new mortgage on 12/24/20.  The refinance included $14,103.04 in closing costs including Origination Charges of $8632.80 in points and a $500 loan application fee.  Can I deduct these expenses on my 2020 tax return?  

[JeffreyR77]

You can deduct a portion of the points attributable to the current year of the new loan as an itemized deduction on your 2020 return. 

You cannot deduct the loan application fee on your 2020 tax return. 

What Refinancing Costs Can I Deduct?