Is VA funding fee deductible?

[bparks_43]

Where and how do I enter the points (VA Funding fee for when we refinanced our house this past year?

[h-hill]

set  me up for download VA state

[DoninGA · Accepted solution]

The VA Funding fee on the purchase of a personal residence is entered as an itemized deduction on Form 1040 Schedule A  for Mortgage Insurance

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Under Your Home
• On Mortgage Insurance, click the start or update button

[lee-mcmillan]

I believe this answer is wrong as of 2017, since the mortgage insurance premium deduction went away.

[DoninGA]

This post was from two years ago.  The answer was correct for that tax year.

[lee-mcmillan]

I understand the answer is from two years ago (hence being marked on the page), but it is worthy to make a note/comment for those filing this year since this is the page it still takes you to without being tax year specific in the original question or your answer.

[DoninGA]

Can do...There are also many other posts referencing the Mortgage Insurance where there are references to the spending bill just passed along with the tax extenders.  But not all of the older posts, like this one have got that reference.

[cretsbabygirl]

The VA Funding Fee deduction expired in 2017, was extended for 2018, but apparently the IRS does not have the proper paperwork (form) for that deduction yet on their books.  Enter the amount of your funding fee in box 5 under mortgage deductions in the insurance premiums section.  When the IRS is able to process this, Turbo Tax has stated they will email/text notify it's customers who have this deduction entered, but for now left unprocessed.

[DoninGA]

To the best of my knowledge, as of this date, Congress has not yet passed any tax bill which extended the Mortgage Insurance deduction for tax year 2018.

[DoninGA]

Since the spending bill with the tax extenders has just been passed and signed into law, both the IRS and tax preparation software companies have to change various forms, schedules, worksheets and calculations to conform with the extenders in the bill.  It will be several weeks before anything is finalized at the IRS and with the TurboTax software which must also be approved by the IRS after they have completed their own system configurations.

Go to this IRS website for information - https://www.irs.gov/newsroom/irs-statement-on-retroactive-extender-provisions

See this TurboTax support FAQ for information - https://ttlc.intuit.com/questions/4241639-tax-relief-the-bipartisan-budget-act-of-2018

[kevinwcampbell]

Any update available on the VA Funding Fee tax deduction?

[Rlhawksnest]

Why is not the VA funding fee reflected on the 1098 that you get from the bank that issued the loan

[DoninGA]

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@Rlhawksnest wrote:

Why is not the VA funding fee reflected on the 1098 that you get from the bank that issued the loan

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You will have to contact your lender to see why that was not entered on our Form 1098 box 5 as mortgage insurance.

[dan1523]

How can I deduct VA funding fee on my federal tax.