The prepaid interest and points are in my closing statement when I bought the condo in 2020. TT asks only about the points.
The pre-paid interest will be on the Form 1098 the Lender sends you.
You do not claim it a second time from the closing statement.
The prepaid interest on the closing statement is included in the total interest paid on the mortgage statement form 1098 issued in January so it is NOT added again anywhere else on the return.
It looks like the lender hasn't included the prepaid interest. When I add up all the interests I paid, it does not match up with what 1098 shows.
Also, I saw another related post relating to the same question
https://ttlc.intuit.com/community/college-education/discussion/where-do-i-put-the-prepaid-interest-charges-on-my-closing-documents-if-they-were-not-added-to-the/00/432957
Prepaid interest (commonly referred to as points) is deductible when you enter your 1098.
If it is included on your 1098 it will be in Box 6. If it doesn't show there you can add it from your closing statement.
Points are typically amortized over the life of the loan. So they will be allocated in small amounts for multiple years. There will be interview questions that will lead you through the process.
@maheshvasn wrote:
It looks like the lender hasn't included the prepaid interest. When I add up all the interests I paid, it does not match up with what 1098 shows.
Also, I saw another related post relating to the same question
https://ttlc.intuit.com/community/college-education/discussion/where-do-i-put-the-prepaid-interest-charges-on-my-closing-documents-if-they-were-not-added-to-the/00/432957
You can either add the interest to the amount in the 1098, or create a new lender without a 1098 (maybe in the name of the closing agent) and report the daily interest there.
You said, "Prepaid interest (commonly referred to as points)"
No! No! No!
These are not the same! Prepaid interest is the interest you own for the remainder of the month in which you close. Points are a fee paid to the lender.