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Are home mortgage insurance premiums tax deductible?
I have private mortgage insurance. The legislation regarding PMI taxes is changing all the time, so I’m confused about how to file my taxes. Are home mortgage insurance premiums tax deductible?
Sadie Lovemore · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I get it—it can be difficult to keep up with tax rulings! According to the IRS, mortgage insurance premiums are tax deductible for amounts that were paid or accrued in 2021. After this, the deduction will not be available unless Congress decides to extend the payment period.
Mortgage insurance premiums (MIP), also known as private mortgage insurance (PMI), were initially allowed to be deducted until the end of the 2017 tax year. Recently, the Consolidated Appropriations Act extended the ability to deduct mortgage insurance premiums.
Still, you can only deduct mortgage insurance if you meet all of the following criteria:
- You itemized your federal tax deductions
- You paid mortgage insurance premiums on a contract issued after December 31, 2006.
- Your adjusted gross income is less than $109,000 per year.
If you meet the requirements and didn’t claim your PMI deduction for the past three years, you still have some time to file an amended return. Even if you do file, you might only save about $200 to $300 annually, depending on your income, tax bracket, and the cost of your premiums.
Roughly 90% choose to claim the standard deduction instead, making them ineligible to deduct mortgage insurance premiums.
Whatever you decide, keep in mind that you can potentially save even more money by switching your homeowners insurance. With licensed broker
Jerry
, you’ll get affordable quotes from the top name-brand insurance companies in seconds. And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
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- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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