Question

Refinanced in December, Paid points, No 1098 issued. How to input points in TurboTax

Forum|Forum|5 years ago
February 12, 2021
1 reply
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I refinanced in December of 2020, Closing date of Dec 23rd. The new mortgage co., will not issue a 1098 due to the fact that my 1st mortgage payment was not due until February 2021. Question? Where can I input the points deduction in the TurboTax program since the points were paid in 2020. I have the Closing Disclosure to show proof of points paid.

Refinancing

RayW7

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.

B

BeeoneAuthor

First of all, thank you for replying to my question? But you state Line 12 of Schedule A, that line attends to Gifts to Charity. Can you clarify.

D

DianeW777

You are correct. Schedule A, Lines 8b and 8c report mortgage interest and points, respectively, that were not reported on a Form 1098.

If you paid Points/Loan Origination that qualifies, you can deduct them even if they aren't reported on you 1098. You still enter the amount as though you have a Form 1098, by entering the information necessary for your deduction.

Be sure to review the article at this link to determine if your points are fully deductible or if they must be deducted ratably over the life of the loan.