I paid points in full as part of my "closing costs" at closing on a refinance of my home mortgage. Turbo Tax dosen't give a choice for that option. What do I do?
Here's how to enter your mortgage interest statement in TurboTax:
- With your return open, search for 1098 and select the Jump to link in the search results.
- Follow the instructions to enter your 1098 info.
As far as filing taxes goes, claiming a tax deduction for mortgage points is a fairly straightforward process. Mortgage points are considered an itemized deduction and are claimed on Schedule A of Form 1040. Here are the specifics:
- Usually, your lender will send you Form 1098, showing how much you paid in mortgage points and mortgage interest
- Transfer this amount to line 10 of Form 1040 Schedule A
- If any of your points were not included on Form 1098, enter the additional amount you paid on line 12 of Form 1040 Schedule A
For many taxpayers, the process really is this simple. In some cases, though, calculating and deducting mortgage points can be tricky. With TurboTax, just answer a few simple questions and we can help you get the proper deduction for your mortgage points.
Points on a refinance can only be deducted over the life of the loan, a lump sum deduction is not allowed.