Deduct All Mortgage Points in One Year

Forum|Forum|1 year ago
January 25, 2025
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I meet the criteria to deduct all mortgage points in one years instead of amortizing. I am using Turbo Tax Home and business 2024. When I get to the screen to select this option, the option is not available (see picture mortgagePoints_01.png). When searching for solutions, in the 2023 version, the option is present (see picture mortgagePoints_02.png). How can I select to deduct all points in one year? Thank you.

TurboTax Home & Biz Windows

AnnetteB6

As you go through the mortgage interest section of your return, there are a few input screens before you get to the one asking about points. If the answers to these questions do not meet the criteria for deducting your points in full in one year, then you will not have the option to do that.

After you enter the name of your mortgage company, you must indicate that the mortgage is for your primary home. Second homes or other properties will not qualify to deduct points in full. Next, you will enter the information shown on your Form 1098 from your mortgage company, If the loan did not originate in the current tax year (as shown in box 3 of Form 1098), you will not be able to deduct points in full. The next screen verifies that the loan is secured by your property and then you will see questions regarding the points you paid.

Since you do not see the option to enter points, you should double check all of your entries up to that point. Pay close attention to the date in box 3.

To learn more, take a look at the following TurboTax help article:

Can I deduct mortgage points?

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zomboo

In addition to @AnnetteB6 response, you can only deduct the points in full if the you provided funds at or before closing, plus any points paid by the seller, were at least as much as the points charged. The funds provided by you are not required to have been applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds paid at or before closing. The funds you provide cannot be borrowed from the mortgage lender.

In order to deduct all of your points, you must check the box "This is a new loan on which I paid points (origination fees) in 2024" and the box "I bought or improved my main home with this loan in 2024" on the “Tell us about any points paid” page.