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Category: Finding Deductions

Interest You Paid - How do I enter Points NOT Reported on 1098?

If you did not receive a Form 1098 from the recipient (bank, mortgage lender, individual, etc) of the points that you paid, contact that recipient to determine if you will be receiving a 1098 for this. In most cases, home mortgage interest and points are reported to you on Form 1098, and you may need to wait to receive this form before completing your return.

If you determine that you will not be receiving a Form 1098 for the points you paid, you can generally find the points that you paid on your settlement statement. Points that you paid only to borrow money are generally deductible over the life of the loan, not all at once. Points paid for other purposes, such as for a lender’s services, are not deductible. To determine the amount that you can deduct, please visit the link below to IRS Publication 936.

Refinancing: In addition, you may have paid points to refinance a mortgage. Similar to points that you paid only to borrow money, you must deduct refinance points over the life of the loan. You generally cannot deduct one lump sum for the points that you paid. To determine the amount that you can deduct, please visit the link below to IRS Publication 936.

Click here to view IRS Publication 936.

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If you did pay any qualifying mortgage points during the tax year, you can enter this under: Federal Section > Deductions > Enter Myself > Itemized Deductions > Mortgage Interest and Expenses > Points Not Reported on Form 1098.