Turbotax 2024 does not include mortgage points as deductible interest

Forum|Forum|1 year ago
February 3, 2025
2 replies
0 views

We bought a house in 2024 with mortgage amount more than $750,000. Mortgage company sold the mortgage to another company shortly after. I have 1098 from both companies. The mortgage points was paid to the first company. No points were paid to the second company. Turbotax calculated the allowable interest deduction proportion properly only based on the total interests paid to both companies but not included the points. Schedule A shows only the calculated deductible interest without including the points. I tried the method posted here for 2023 by indicating both companies as the most recent 1098 and it still does not work. Please help.

Thanks

BrittanyS

You will follow these steps in TurboTax to add mortgage points:

Sign in to TurboTax
Click the arrow next to Deductions and Credits
Click Start next to Mortgage Interest and Refinancing
Answer interview questions
Choose I paid points when I refinanced
Enter points paid

If the cost of the home exceed $750,000 the amount of points that can be used are limited. If you are not able to deduct your points in the year you buy, then the points will be deductible over the life of the loan.

For more information, see the link below:

How to Deduct Mortgage Points on your Return

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Skchu40Author

That is not my question. I know how to enter interest and points and I know the limitation for the $750,000. While interest and points were both entered and shown on the Home Int Wkst, Turbotax does not include the points amount in Schedule A. Only the interests from both mortgage companies were included in Schedule A. The points was from the 1st company and entered accordingly. No points from the 2nd company. The 1st company sold the mortgage to the 2nd company so I have two 1098 forms. All data was entered correctly but points did not show up on schedule A. I have also tried to designate both companies as the "most recent 1098" as previously posted answer by Patricia and that did not work either. Doing that actually wiped out the entire interest deduction from Schedule A and pushed me back to standard deduction. Doing the correct way by designate only the 2nd company as the "most recent 1098" caused the points from the 1st company not included in Schedule A. That is my question. I am stuck in this problem and cannot move forward. Thanks

KrisD15

There is a screen for the first loan where, if you want to claim the full amount of points paid, you need to select BOTH

"This is a new loan on which I paid points"

AND

"I bought or improved my main home with this loan in 2024"

Please return to that interview and see if both those responses were selected.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

BrittanyS

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

@Skchu40

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"