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EDIT for fat fingers no 9 : 9 points paid on principal residence) in the amount of $4276.43.
It has to be an issue with the two forms and limitations. The worksheets are not a part of the return. You can make one correct entry instead. Your goal is to file an accurate return.
See About Publication 936, Home Mortgage Interest Deduction part II on page 9. Use page 12 to combine all loans. Only one table, table 1, is used for all of your loans in one place. The instructions to go through line by line are after the table. There are examples throughout to help you.
Page 13 has mixed-use mortgages.
I had these two critical issues in TurboTax software regarding points:
1. Box 6 doesn't appear. The app asks about points not reported in 1098 later in time. But they WERE reported in 1098, so it doesn't look right to put them there.
2. The app amortizes the points even when the taxpayer asks not to (by not checking the corresponding checkbox).
I was able to resolve them but making sure that I checked a checkbox saying that I purchased or refinanced a house in the same year. Then, it asked for the points in 1098 and the amortization disappeared.
Yes. You generally can't deduct the full amount of points in the year paid. Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. See Deduction Allowed Ratably next. If the loan is a home equity, line of credit, or credit card loan and the proceeds from the loan are not used to buy, build, or substantially improve the home, the points are not deductible.
You can fully deduct points in the year paid if you meet all the following tests.
Your loan is secured by your main home. (Your main home is the one you ordinarily live in most of the time.)
Paying points is an established business practice in the area where the loan was made.
Learn more at Points.
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