VA Funding Fee

[Jw2022]

Hello, 

Bought a house in Sep 2021 with my VA Loan Benefit expecting the VA Funding Fee would be treated as Closing Costs or Points. Turned out Turbo Tax didn't recognize the offset, why?

Thanks, 

Jw

[STaxLady]

@Jw2022 

Thanks for the question Jw.

The VA funding fee is an allowable deduction. It should have been reported in box 5 of your 1098 mortgage statement, where PMI is reported. It would then be entered into TurboTax when entering the mortgage interest and be included when calculating the itemized deductions on Schedule A.

That being said, whether or not a taxpayer is able to benefit from these itemized deductions over the standard deduction is dependent upon other factors. 

I hope this answers your question, Jw.