When you took out a mortgage to buy your home, did you pay points? You may be able to deduct that prepaid interest on your federal tax return -- but only if you meet a long list of rules. The points you paid when you signed a mortgage to buy your home may help cut your federal tax bill. With points, sometimes called loan origination points or discount points, you make an upfront payment to get a particular rate from the lender. Since mortgage interest is deductible, your points may be, too. If you itemize your deductions on Schedule A of IRS Form 1040, you may be able to deduct all your … Continue reading...