Points from a refinancing loan

Forum|Forum|1 year ago
March 26, 2025
1 reply
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I'm helping my son with his taxes. He refinanced his loan on his house in 2024. He paid over $10,000 in points on the new loan. The 1098 he received does not show any points. He did get the loan for more than the original balance on the previous mortgage to renovate his kitchen. He did include a little more to pay off his truck to free up cash for the renovation. I have the details on his closing statement. How do I enter this in Turbo Tax? It's only allowing me to enter what was on the 1098 even though it states that some points are deductible from the closing statement. I would appreciate any help with figuring this out. Many thanks!

TurboTax Home & Biz Windows

Vanessa A

Level 15

As you walk through the entry of the 1098, you will be asked was it all used to buy build, or substantially improve the home. You will answer no, I used some of it for other things to that question. You will be asked how much was used for other things, here you will enter the amount that was used to pay off the truck. The part used for the kitchen renovation would

To enter points, you will need to check the box that says I'm spreading the points over the life of my loan.

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MB232Author

Level 2

The sentence where you began to talk about the kitchen renovation got cut off. Could you please repost this part? Many thanks!

Vanessa A

Level 15

The kitchen renovation would be included with the part of the loan that is used to buy, build or substantially improve the home. The interest on this part of the loan would also be deductible itemized interest.

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