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Charles Markham
Charles Markham, Enrolled Agent
Category: Tax
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Experience:  IRS Enrolled Agent, US Tax Court Practitioner
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I have a question about how to input property taxes and mortagage

Resolved Question:

I have a question about how to input property taxes and mortagage insurance on turbotax. thanx
Submitted: 4 years ago.
Category: Tax
Expert:  Charles Markham replied 4 years ago.

TaxWhisperer :

What's your question? I can help you.

Customer:

Hi. I am uasing turbotax to do my txes and i at the deductions and credits section

TaxWhisperer :

Okay.

Customer:

on the "my home" section

TaxWhisperer :

What version of turbotax?

Customer:

How do i know what amoun to input on property taxes and mortagage insurance

Customer:

turbotax deluxe

TaxWhisperer :

Okay. That information is normally on Form 1098 that you get from your mortgage company. Did you buy your home last year?

Customer:

i received 2 of them

TaxWhisperer :

Do you have two mortgages?

TaxWhisperer :

Was your mortgage sold?

Customer:

because when i first bought my home, it was under a different lender

TaxWhisperer :

Is one of them marked "Corrected"?

Customer:

then B of A bought the mortagage

TaxWhisperer :

Okay, so you have two 1098s. You all of the numbers together.

Customer:

actually both are not checked

TaxWhisperer :

Total property taxes paid, total mortgage insurance paid.

TaxWhisperer :

Did you buy in 2011? Did you say?

Customer:

July 2011

Customer:

i closed on the 14th

TaxWhisperer :

Okay, when you look at your HUD-1. There may be "property taxes paid by seller" that were charged back to you.

Customer:

it was under provident savings mortgage til Aug

TaxWhisperer :

You would add these in, too.

Customer:

then BoA took over

TaxWhisperer :

Did you pay a net origination fee at closing? Probably not with Provident.

Customer:

yes the seller paid closing costs and i put 3k for escrow but i got that back

TaxWhisperer :

You don't need to worry about "seller paid closing cost credit". You can ignore that.

Customer:

oh ok

TaxWhisperer :

It's actually a reduction in the sales price.

Customer:

so i have to look at my HUD1 document?

TaxWhisperer :

Yes, take a look. however, very few closing costs are deductible.

Customer:

ok, for the propert tax, where do i find the amount to input onto turbotax?

Customer:

under the property tax section

TaxWhisperer :

It should be on the FRONT page not page two.

TaxWhisperer :

There should be an allocation between you and the seller.

Customer:

ok let me see...

TaxWhisperer :

Line 106 or Line 107 on the first page.

TaxWhisperer :

Line 210 or Line 211, also

Customer:

oh ok. let me look at those lines...

Customer:

it reads; 106 city/town taxes blank

Customer:

107 county taxes blank

Customer:

Adjustments for items paid by seller, 210 city/town taxes blank

Customer:

211 taxes at $1088.12/semi-annually from 07/01/2011 to 07/14/2011 $78.59

TaxWhisperer :

Hmmmm...okay. You should now check to see if you were charged $1088.12 at closing. You may or may not have been.

TaxWhisperer :

Look for this exact number on the left hand column of either page 1 or page 2.

TaxWhisperer :

On page one, it might be in the upper half.

TaxWhisperer :

On page two it is typically towards the bottom.

TaxWhisperer :

You are scanning for the number 1088.12 by itself in a lefy hand column.

TaxWhisperer :

It may or may not be there.

Customer:

oh ok. let me see...

TaxWhisperer :

standing by.

Customer:

i see that on line 511

Customer:

511 taxes at 1088.12/semi-annually from 07/01/2011 to 07/14/2011 $78.59

TaxWhisperer :

Okay. That's fine then.

TaxWhisperer :

Now new topic. Look at page 2 and what is the number (if any) on line 803 "Your adjusted origination charge"

Customer:

i dont see that amount on page 2

Customer:

oh sorry wait... line 803...

Customer:

its says to provident savings bank F.S.B. (from GFE#A) 2,579.56 under "paid from boprrowers funds at settlement"

TaxWhisperer :

Okay, those are POINTS PAID At closing. If they were not listed on your form 1098, you should include them in the right place.

TaxWhisperer :

So, have I answered your questions?

Customer:

where should it go under

TaxWhisperer :

Points paid. There will be a place in the interview where they ask you. You should check the box that you bought a home in 2011.

Customer:

ok

Charles Markham and other Tax Specialists are ready to help you