If you’ve been paying for private mortgage insurance every month because you put down less than 20% on your home, you may be able to get some of that money back by claiming the PMI deduction on your federal income tax return.
Did you know that not deducting PMI is one of the top mistakes home owners make on their taxes? Get the details on that in our Q&A for home-related taxes.)
Do You Qualify for the Deduction?
Just because you have PMI premiums doesn’t mean you can deduct them. Here’s what qualifies you:
- You got your loan in 2007 or later.
- Your mortgage is for your primary residence or a second home that’s not a rental property.
- Your adjusted gross income is no more than $109,000. The deduction begins to phase out once your adjusted gross income (AGI) exceeds $100,000 ($50,000 for married filing separately) and disappears entirely at an AGI of more than $109,000 ($54,500 for married filing separately).
Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®
