If you have mortgage interest from a second lender in 2016, then you should add a lender to enter the additional interest that was paid.
If not payment has been made yet you can wait until 2017. However if you have points/loan origination fees under a refinanced home loan you may want to use the information below to add the lender and enter the portion of the points you are allowed to deduct. You will want to track this from year to year.
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If there are loan origination fees on a refinanced loan they will have to be amortized over the life of the loan to the extent there was not additional funds used to buy, build or improve the home. If extra money was borrowed to buy, build or improve the home the points attributable to that portion can be deducted in the year of the refinance, while the rest of the points should be deducted over the life of the mortgage each year until it ends.
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Loan or mortgage ends. If your loan or mortgage ends, you may be able to deduct any remaining points in the tax year in which the loan or mortgage ends. A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. However, if the refinancing is with the same lender, the remaining points generally are not deductible in the year in which the refinancing occurs, but may be deductible over the term of the new mortgage or loan. Simply divide the total or adjusted amount by the number of months of the life of the loan. This needs to be tracked until the loan is paid off.
In TurboTax (online or desktop) follow these steps to enter your interest:
- Use the search box, upper right
- Search for itemized deductions
- Jump to itemized deductions
- Follow the prompt to make your entry for refinanced interest and/or points
