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I did my taxes yesterday and I am concerned about one item. Turbo Tax asked if I paid points on my mortgage in 2015 and I had. Can I get credit for that in 2016?

Everything I read says you can get credit for points paid on a mortgage the year it was paid.  Yet Turbo Tax had me take credit a year after I paid the points.
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AndreaG
New Member

I did my taxes yesterday and I am concerned about one item. Turbo Tax asked if I paid points on my mortgage in 2015 and I had. Can I get credit for that in 2016?

There are specific requirements that have to be met in order to deduct your points in the year that you paid them. If you dont meet these requirements then you can deduct them over the life of the loan if you meet the requirements to do that.

Additionally, if you pay points to refinance your mortgage, you would have to take a deduction for the points over the life of the loan, unless you meet specific requirements to deduct them in the year paid.

If you pay points for a loan that is secured by a second home, you would have to take a deduction for the points over the life of the loan.

Please refer to page 7 of pub 936 under the headings, "deduction allowed ratably", "deduction allowed in year paid" "second home", and "refinancing" to review the requirements.  https://www.irs.gov/pub/irs-pdf/p936.pdf

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AndreaG
New Member

I did my taxes yesterday and I am concerned about one item. Turbo Tax asked if I paid points on my mortgage in 2015 and I had. Can I get credit for that in 2016?

There are specific requirements that have to be met in order to deduct your points in the year that you paid them. If you dont meet these requirements then you can deduct them over the life of the loan if you meet the requirements to do that.

Additionally, if you pay points to refinance your mortgage, you would have to take a deduction for the points over the life of the loan, unless you meet specific requirements to deduct them in the year paid.

If you pay points for a loan that is secured by a second home, you would have to take a deduction for the points over the life of the loan.

Please refer to page 7 of pub 936 under the headings, "deduction allowed ratably", "deduction allowed in year paid" "second home", and "refinancing" to review the requirements.  https://www.irs.gov/pub/irs-pdf/p936.pdf

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