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February 21, 2023
Question

Can someone tell me where to find the POINTS

  • February 21, 2023
  • 1 reply
  • 0 views
paid on the the paperwork of a loan.
 I cannot find anything

1 reply

February 21, 2023

Perhaps you didn't pay any points or they're called something other than points. 

 

Your lender may use alternative terminology for points, including:

  • mortgage points, 
  • loan points, 
  • loan origination fees,
  • maximum loan charges, and 
  • loan discounts, just to name a few. 

To further confuse the situation, they may even use misleading terminology, for example, "loan origination points" to describe what are actually discount points. If you don't know which category your points belong to, ask your lender for clarification.

 

Discount points lower your mortgage rate by a certain percentage. When you buy discount points, you're paying interest up front in exchange for a lower interest rate on your mortgage. Because discount points are prepaid interest, they're deductible as mortgage interest on a main home or second property that's not being rented out.

 

Origination points are charged by lenders to cover loan processing costs. Sometimes they'll also include fees for appraisals, inspections, title, attorneys, notaries, and real estate taxes. Origination points aren't deductible on non-rental property.

 

If you qualify to deduct the points paid when you purchased your home, enter them in TurboTax:

  1.  Sign into your TurboTax Account
  2. Click on Continue where I left off
  3. On the left side screen, select Federal then Deductions & Credits
  4. On the Your tax breaks screen, scroll down to Mortgage Interest and Refinancing (Form 1098) then Edit/Add
  5. On the Here's your 1098 info screen, select Review next to your first 1098 form.
  6. Continue with the onscreen interview until you get to the Did you pay points in 2022 when you took out the loan? screen. Select one of the choices and Continue.
  7. On the Tell us about the points you paid screen, select Points are reported on our 1098. A box will appear where you can enter the amount of points paid. 
  8. Continue with the onscreen interview until complete
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