Homeowners who meet certain conditions may be allowed to deduct their private mortgage insurance premiums from their income taxes. Private mortgage insurance, or PMI, is a requirement for homeowners who are unable to put 20 percent down on their home.
A recent tax policy that allowed homeowners to deduct private mortgage insurance on loans taken out in 2007 has been extended through 2011. In order to qualify, homeowners must have taken out their mortgage on or after January 1, 2007, Bankrate.com reports. Additionally, some income limitations apply.
Individuals filing as single, head of household or married filing jointly will begin to see a phase-out of how much they may deduct when their adjusted gross income reaches more than $100,000. The AGI limitation drops to $50,000 for married couples filing separately, the news source adds. The deduction can be claimed on Schedule A, line 13 of a consumer’s tax forms.
Homeowners who think they may qualify for the private mortgage insurance deduction should contact their tax preparer during filing season to ensure they meet the criteria and determine how much they may claim.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.