I paid ~$8K to buy down loan points for a new home purchase. This is shown on my Escrow Settlement Statement under heading "Other Loan Charges" - "1.25% of Loan Amount Points". However, my form 1098 box 6 shows only ~$1K on Points paid. I am already deducting the amount on my form 1098. Do I also deduct the $8K from my Escrow Settlement statement? Do I deduct the residual $7K or the full $8K? Do I add a new Lender line on TurboTax for the $8K, or do I alter what's I report on 1098? They are same bank. TurboTax seems to think there are Mortgage related charges that are deductible but may not be included on 1098. But, directions are not clear how to resolve this. Thank you for your help.
Closing Documents show $1K "Borrower-Paid" and $7K "Paid by
Others". So, now it makes sense why the form 1098 showing a lower number. I am not sure why the $7K was categorized paid by others, because I paid for the full $8K. So, do I still get to deduct the full $8K, and overwrite what's on the form 1098? Thanks again.
What other lines from the Escrow Settlement Statement are deductible for new home purchase?
What other lines ? None
You can use the seller paid points if you agree to reduce your home's cost basis by the same amount.
You can report the entire amount of points paid from the closing statement even if the amount on the 1098 is incorrect ... just make one entry.