Tax Year 2016: Can I deduct lender origination fee not listed on Form 1098?

[tobald]

I purchased a home in 2016. A "Lender Origination Fee" is listed on line 02 of my Closing Disclosure under "Origination Charges", but is not included in the "points paid" box on my Form 1098.  I should note line 01 of the Closing Disclosure (% of Loan Amount (Points)) is blank.

[KarenL2]

Yes. Sometimes Points paid on a purchase are not included on the Form 1098.

You can deduct any interest, property taxes, and most mortgage insurance premiums that are reported on the Form 1098 Mortgage Interest statement.  You can also deduct any interest or property taxes from the settlement statement that are not already reported on the Form 1098 and not "pre-paid" and held in escrow.  Additionally, you can deduct qualified points paid on a mortgage and qualified mortgage insurance premiums. (Points can also be called loan origination fees, maximum loan charges, discount points, or loan discount.)

Where do I enter my 1098 mortgage interest statement?

https://ttlc.intuit.com/replies/4793767

Here's an alternate way to get there:

• Federal Taxes tab (Personal in the Home and Business Version
• Deductions and Credits
• Select Continue or I'll Choose What I Work (if they show up)
• Your Home

[tobald]

Thanks. Just confirming - the fee is deductible even if it isn't tied to points? This "origination fee" item looks like a flat fee line item, not connected to points/% of the loan.

[KarenL2]

The terms are interchangeable.  Per IRS: "The term 'points' is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. "  <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p936/ar02.html#en_US_2016_publink1000229944">https://www.irs.gov/pu...

I understand your concern.  If you want to contact the title company to be certain they are actually qualified points/origination fees, you should do so.  However, they typically, will only label them as such if they fall under that category.  Other "types" of fees are usually listed elsewhere (such as a Lender Fee, Processing Fee, etc.).

[tobald]

Thanks! I'll check with my lender to verify. I appreciate your follow-up.