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Where/how do we enter the prepaid mortgage interest paid on a refinance of principal residence

 
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3 Replies

Where/how do we enter the prepaid mortgage interest paid on a refinance of principal residence

Prepaid mortgage interest and property tax held in escrow is not deductible. 

Only pro-rated amounts for interest and property taxes (based on a daily amount from your closing date until your first payment) are deductible.

To enter prepaid mortgage interest

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits 
  • Click on I'll choose what I work on (if shown)
  • Under Your Home
  • On Mortgage Interest, click on the start or update button

On the Let's get the details from your lender 1098 now page, enter prepaid interest in Box #1, Mortgage interest

If applicable, click the The interest amount I entered is different than what's on our 1098 box.

     

    MPSanchez
    New Member

    Where/how do we enter the prepaid mortgage interest paid on a refinance of principal residence

    Do I enter it separately as it was paid directly to the mortgage lender (Fannie/Freddie) or include as part of the 1098 dollar amount provided by the servicer (who was not yet servicing the loan at that time). 

    Where/how do we enter the prepaid mortgage interest paid on a refinance of principal residence

    can you further explain what you mean by 'pre paid' interest.  the servicer will report all interest on the 1098.,

     

    are you talking about the interest on the closing statement? that should be on the 1098 as well.

     

    if your servicing was sold shortly after closing the loan, each servicer that serviced the loan and collected interest is required to send you a 1098.

     

    please post back 

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