1098

[jim1101]

Did a refi last year, paid points at closing, sold back to the same bank before 1st payment was due. Received 2 1098 forms for each loan, however received nothing from the broker that did the refi and completed the loan so my points do not show up. Can I deduct the points % I see on the closing papers?

Also on the original loan we paid mortgage insurance how do I enter this?

Appreciate any help, thanks in advance

[DawnC]

On a second home, points can only be deducted over the life of the loan. The same is true for refinances, except in cases where you used a portion of your refinance proceeds to improve your home. In that case, the points related to the home-improvement portion of the loan can be deducted in the year you paid them.

If you refinanced with the same lender, any undeducted points left over from the first mortgage will be deducted over the life of your new loan. But if you refinanced with a new lender, any leftover undeducted points can be deducted in the year of the refinance.

When you get to the Did you have any home loans? screen in the Deductions Credits section, we'll walk you step-by-step through your mortgage, including points and refinances.

Deducting Points

Enter your private mortgage insurance premiums in box 5 of your 1098 entry screen:

1. With your return open, search for 1098 and select the Jump to link at the top of your search results.
2. Follow the instructions and questions.
3. Soon, you'll come to the 1098 entry screen. Your PMI/MIP is entered in Box 5 – Mortgage insurance premiums.