Question

Can I deduct these mortgage points

Forum|Forum|5 years ago
February 10, 2021
1 reply
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We bought a new home and received form 1098. In box 8 there is a $ amount.

However when looking at our closing disclosure, the lender credited us the same amount to make it a zero point loan.

Why would there be amount be in box 6? If I hadn’t looked carefully at our closing documents I would assume I could enter this number. Right? I’m confused.

RayW7

If they are listed on the 1098 I would enter the information exactly as received.

As far as filing taxes goes, claiming a tax deduction for mortgage points is a fairly straightforward process. Mortgage points are considered an itemized deduction and are claimed on Schedule A of Form 1040. Here are the specifics:

Usually, your lender will send you Form 1098, showing how much you paid in mortgage points and mortgage interest
Transfer this amount to line 10 of Form 1040 Schedule A
If any of your points were not included on Form 1098, enter the additional amount you paid on line 12 of Form 1040 Schedule A

For many taxpayers, the process really is this simple. In some cases, though, calculating and deducting mortgage points can be tricky. With TurboTax, just answer a few simple questions and we can help you get the proper deduction for your mortgage points.

If you are concerned if the mortgage provider made an error it might be worth a phone call