Follow these steps to add points paid:
- Under the Federal menu, choose Deductions & Credits
- Click Edit/Add next to Mortgage Interest and Refinancing (Form 1098)
- Click Review next to the correct lender
- Verify the lender, click Continue
- Answer the question Do any of these uncommon situations apply, click Continue
- Verify the entries on the 1098 (this does not include the points) and click Continue
- Now you are at the points screen, answer the question appropriately. You will likely choose the first option, We paid points... The mortgage origination date is know based on the information entered on the previous screen for the 1098. Click Continue
- On this screen, provide the information about the points you paid. Click Continue.
The tax treatment of these points will depend on the loan. If such points paid on a mortgage were for the purchase or improvement of a personal residence, they may be deducted in the year they are paid. Points paid to refinance a home mortgage are not deductible when paid, but must be capitalized and the deduction spread over the life of the loan (amortized). Points charged for specific loan services, such as the lender's appraisal fee and other settlement fees, are not deductible.
Home Mortgage Points
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