Why is my VA Funding Fee not showing as an allowed itemized deduction?

[Coram1]

I am trying to do my 2021 taxes. I added in the VA Funding Fee, Paid Interest, and Paid Taxes. The VA Funding Fee is not being calculated into the Itemized Deductions. The total for just these three amounts is over 26k. Thanks for the help!

[DMarkM1 · Accepted solution]

Yes, assuming you entered the VA funding fee into box 5 as "Mortgage Insurance"  it is generally deductible.  However, there is a limitation based on your Adjusted Gross Income.  Here is an excerpt from IRS Publication 936.  

Limit on deduction.

If your adjusted gross income on Form 1040 or 1040-SR, line 11, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated.  If your AGI is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums.

[Coram1]

My AGI is less than 100k, I'm filing jointly and I am using the TT Web Version. I have 2 1098 forms due to the initial Mortgage being sold. The "first" 1098 has the Fee listed in Box 5. The combined amount of VA FF, Points, Interest, Property Taxes is over 27k. However, the TT Web is still only giving me the Standard Deduction. Am I forced to purchase the TT Software and not use the TT Web?

[LoganathanB]

It could be due to the limitation on the deduction of state and local income, sales, and property taxes.

Your deduction of state and local income, sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).

Therefore itemized deduction may be less than the standard deduction.

You do not have to switch to TurboTax Desktop. You can preview all the forms and worksheets once you pay for TurboTax Online.

For more information Click on the link

Deductible Taxes

[Coram1]

My State is Texas. No state or Local taxes to claim. Also, I am, talking about the VA Funding Fee that according  to the IRS Pub, does not have a limitation. If I take the time to fill out the actually paperwork, I can add it in.

[Coram1]

I understand where my calculation mistake was. AGI > 109,000.