Mortgage points

6 replies
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Where does one record the full amount of mortgage points paid? The only options are for amortizing or when there are no points to deduct.

RobertGAnswer

Alumni - Intuit

The tax treatment of points depends on the loan.

If points paid on a mortgage were for the purchase or improvement of a personal residence, they may be deducted in the year they are paid.

Points paid to refinance a home mortgage are not deductible when paid, but must be capitalized and the deduction spread over the life of the loan (amortized).

Follow these steps to add points paid:

Under the Federal menu, choose Deductions & Credits
Click Edit/Add next to Mortgage Interest and Refinancing (Form 1098)
Click Review next to the correct lender
Verify the lender, click Continue
Answer the question Do any of these uncommon situations apply, click Continue
Verify the entries on the 1098 (this does not include the points) and click Continue
Now you are at the points screen, answer the question appropriately. You will likely choose the first option, We paid points... The mortgage origination date is know based on the information entered on the previous screen for the 1098. Click Continue
On this screen, provide the information about the points you paid. Click Continue.

This question was previously answered by VictoriaD75

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RobertGAnswer

Alumni - Intuit

The tax treatment of points depends on the loan.

If points paid on a mortgage were for the purchase or improvement of a personal residence, they may be deducted in the year they are paid.

Points paid to refinance a home mortgage are not deductible when paid, but must be capitalized and the deduction spread over the life of the loan (amortized).

Follow these steps to add points paid:

Under the Federal menu, choose Deductions & Credits
Click Edit/Add next to Mortgage Interest and Refinancing (Form 1098)
Click Review next to the correct lender
Verify the lender, click Continue
Answer the question Do any of these uncommon situations apply, click Continue
Verify the entries on the 1098 (this does not include the points) and click Continue
Now you are at the points screen, answer the question appropriately. You will likely choose the first option, We paid points... The mortgage origination date is know based on the information entered on the previous screen for the 1098. Click Continue
On this screen, provide the information about the points you paid. Click Continue.

This question was previously answered by VictoriaD75

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

C_L2019

Level 2

I'm using Turbo Tax Deluxe. I do not see a Edit/Add option next to Mortgage Interest and Refinancing Form, nor a Review next to the correct lender.

JohnB5677

Alumni - Intuit

Let's try it this way from the Desktop version.

Deductions & Credits
I'll choose what I work on
Under Your Home
Select Mortgage interest, Refinancing ... [Update]
List of lender's names [Edit} the one you want
Option to correct lender's name
Answer None of these apply
Enter your 1098 here
Answer question on points
Continue with questions to the end

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Lary1927

Level 2

I am using TruboTax Premier and it is not allowing me to deduct the complete value of the points I paid for my home mortgage loan originated in 2019. I have read the requirements for this on the IRS web site and meet all the criteria. How can I "force" TurboTax to NOT amortize the points of the length of the loan.

RCReview

Level 2

Same situation for me, how can we fix this issue? TurboTax is not showing the option for me to input the paid points

DawnC

Employee Tax Expert

If points paid on a mortgage were for the purchase or improvement of a personal residence, they may be deducted in the year they are paid or amortized. Are you entering a mortgage statement for a mortgage that originated in 2021? Looking at your screenshot, it doesn't look that way. When did you take out the mortgage and pay the points?

Points paid to refinance a home mortgage are not deductible when paid, but must be capitalized and the deduction spread over the life of the loan (amortized).

Deductibility of Points

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