My 1098 through my mortgage company does not include the prepaid interest and property taxes indicated on the closing cost. Can I add these cost on the1098 section?

[MichaelDC · Accepted solution]

Yes. You can deduct any taxes paid or mortgage interest as part of your closing costs and reported on your HUD-1.  Don't change the 1098 entry unless all else fails.

The following lines may vary as the official HUD form changes over time: http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf

• 210 - City/town taxes - Deductible as itemized deduction on Form 1040 schedule A
• 211 - County taxes - Deductible as itemized deduction on Form 1040 schedule A
• 801 - Loan Origination Fee - Deductible as itemized deduction ('points') on Form 1040 schedule A
• 802 - Loan Discount - Deductible as itemized deduction ('points') on Form 1040 schedule A
• 901 - Daily interest charges - Deductible as itemized deduction - this interest typically included in year end interest statement (Form 1098)
• 1004 - Property taxes - Deductible as itemized deduction when paid from escrow; can be added to property taxes on your 1098 to indicate total amount of property tax paid for the year. 

You'll enter them in the Deductions & Credits section:

1.      Open (continue) your tax return.
 (To do this, sign in to TurboTax and click the Take me to my return button.)

2.      In the search box, search for "real estate taxes" and then click the "Jump to" link in the search results.

3.      Answer Yes to the question Did you pay property or real estate taxes in 2017?

4.      Enter your property/real estate taxes on the next screen.

 When your property/real estate taxes are included on your 1098, you’ll enter them as part of your Mortgage Interest. But, if they aren’t listed on your 1098, you’ll enter them separately as property/real estate taxes.

[gzhou-2009]

I did follow the instrustion but Tubtax dexule doesn't change the tax due ...

[daa]

how/where can closing costs that are deductible as itemized, be entered from closing disclosure or hud correctly if not listed on 1098? i read other Q&As that seem to contradict each other..? some say add to amounts to 1098, some say create additional 1098..? thank you in advance!

[CatinaT1]

Closing costs are not deductible.  They reduce your basis for sale purposes, but you do not deduct them.

Mortgage interest and real estate taxes are the only things that are deductible.

[daa]

thank you! when entering as separate 1098, should i check the box that says interest amount is different than whats on my 1098?

[AnnaBack]

Go to Forms at TurboTax (top right side see Forms click).  Look for Schedule A work sheet (Itemized deductions) look for "interest you paid" b) home mortgage interest not reported to you on Form 1098.  Key in the prepaid interest amount (the number is on your closing documents).  Go back to Turbo tax "click easy steps".

To double check the prepaid interest and compare to the 1098 form from the bank.

You can go to an Amortization Schedule print out yearly.

For example Amortization 2020 interest 22,000 

Form 1098                                20,000

prepaid interest at closing       1,980

Total.                                           21,980. that is close enough