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Hairybeast
New Member

Points Paid

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?

2 Replies
RayW7
Expert Alumni

Points Paid

Here's how to enter your mortgage interest statement in TurboTax:

  1. With your return open, search for 1098 and select the Jump to link in the search results.
  2. 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.

Opus 17
Level 15

Points Paid

Points on a refinance can only be deducted over the life of the loan, a lump sum deduction is not allowed. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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