Mortgage Points 2020

[Chris236]

I'm filing my 2020 taxes and turbotax keeps reducing my mortgage points claimed to a minute fraction of what I paid.  Any thoughts on why it's doing this?  I've read there's a limit based on home value ($750K) and we're nowhere near that.  Help is appreciated!

[PattiF]

You generally can't deduct the full amount of points in the year paid. Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. 

For a 30 year mortgage with points, the points would be amortized over the life of the loan. The total of the points would be divided by the number of years of the loan to get the yearly amount that is entered on your taxes.