Mortgage Points not transferring to Schedule A

[tck1202]

The mortgage points that I entered from my 1098 are not transferring to Schedule A

[MonikaK1]

Revisit the interview on mortgage interest and points in TurboTax. As you are entering the information from your Form 1098 in TurboTax, when you see the question, "Did you pay points in 20xx when you took out the loan?", select "We paid points when we purchased or refinanced to improve our main home in 20xx" in order to deduct the points. 

If you instead select "We paid points when we refinanced, purchased a second home, or opened a home equity loan in 20xx", TurboTax will set the points up to be amortized.

Generally, the Internal Revenue Service (IRS) allows you to deduct the full amount of your points in the year you pay them. If the amount you borrow to buy your home exceeds $750,000 million ($1M for mortgages originated before December 15, 2017), you are generally limited on the amount of points that you can deduct. The IRS also imposes the following requirements to deduct mortgage points:

• The mortgage must be used to buy or build your primary residence
• The points must be a percentage of your mortgage amount
• The use of points must be a normal business practice in your area
• The amount of points paid must not be excessive for your area
• You must use cash accounting on your taxes
• The points must not be used for items that are typically stand-alone fees, such as property taxes
• You cannot have borrowed the funds to pay for the points from the mortgage lender or broker
• The amount you pay must be clearly itemized as points on your loan documents

If you aren't able to deduct your points in the year you pay them, you may still qualify to deduct them over the life of the loan.

See this TurboTax Tips Article for more information on this topic.

If you receive two forms 1098, you can add the second form 1098 by following these steps:

• In TurboTax Online, open your return and click on Federal Taxes then on Deductions & Credits
• Click Edit/Add next to Mortgage Interest, Refinancing, and Insurance
• On the Mortgage deduction summary page, click on Add a Lender and follow the prompts.

Please see IRS Tax Topic 504 for further guidance regarding mortgage points.