I bough my house in 2022 and I have 2 1098s. In the 1st one I paid points and in the second one is not. How can I deduct my points?

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.

Generally, the Internal Revenue Service (IRS) allows you to deduct the full amount of your points in the year you pay them. If the amount you borrow to buy your home exceeds $750,000 million ($1M for mortgages originated before December 15, 2017), you are generally limited on the amount of points that you can deduct. 

The IRS also imposes the following requirements to deduct mortgage points:

• The mortgage must be used to buy or build your primary residence
• The points must be a percentage of your mortgage amount
• The use of points must be a normal business practice in your area
• The amount of points paid must not be excessive for your area
• You must use cash accounting on your taxes
• The points must not be used for items that are typically stand-alone fees, such as property taxes
• You cannot have borrowed the funds to pay for the points from the mortgage lender or broker
• The amount you pay must be clearly itemized as points on your loan documents

If you aren't able to deduct your points in the year you pay them, you may still qualify to deduct them over the life of the loan.