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January 25, 2020
Question

deduction

  • January 25, 2020
  • 1 reply
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I refinanced earlier this year and one of my closing costs was prepaid mortgage interest.  I have not received a 1098 form for this, but it does appear as an item on my closing costs.  How do enter this as a deduction on my turbotax.

1 reply

January 27, 2020

 Please see the below TurboTax recommended answer.

 

If by prepaid interest you mean interim interest, then you can deduct it. If you mean points on a refinance , they will need to be amortized over the life of the loan, unless the loan was used to improve your main home. 

 

If you paid points or interest on your refinance in 2019, enter the expenses in the same section as your original lender. If you did not receive a 1098 for these expenses, enter as if you did receive a 1098. It will flow to the correct line on your schedule A. 

To navigate to the section:

  • In your open return, select My Account
  • Tools
  • Topic Search
  • Type '1098' in the box, then select GO

https://www.irs.gov/pub/irs-pdf/p936.pd

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