Can you deduct pmi on your taxes

The company was founded by Nomi Smith and Luke Landau, two tenured mortgage officers who recognized that home buyers have been overpaying for private mortgage insurance for decades. How much will homeowners save on PMI tax deductions?

Are there restrictions on how much I can deduct? What are the benefits of PMI tax deductions? Follow Us Facebook externa link icon. Twitter externa link icon. Instagram externa link icon. LinkedIn externa link icon. YouTube externa link icon.

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The PMI on the additional property qualifies only if the home is used by you personally. It depends on how much you owe and your tax bracket. The precise calculation can be complicated, as it involves various factors. Finally, while there is no statutory limit on the amount of PMI premiums you can deduct, the amount might be reduced based on your income. This income limit applies to single, head of household or married filing jointly taxpayers.

How We Make Money. Written by R. Written by. Edited By Bill McGuire. Edited by. Bill McGuire. Bill McGuire is senior mortgage editor at Bankrate. Share this page. Bankrate Logo Why you can trust Bankrate. Bankrate Logo Editorial Integrity. Key Principles We value your trust. Bankrate Logo Insurance Disclosure. The other main requirement to qualify for a PMI tax deduction is that you must itemize your federal tax deductions.

The rules surrounding federal tax deductions have changed constantly over the last few decades. The tax deduction for PMI was set to expire in the tax year, but recently, legislation passed The Consolidated Appropriations Act, effectively extending your ability to claim PMI tax deductions for the tax period.

In short, yes, PMI tax is deductible for Originally, private mortgage insurance tax deductions were part of the Tax Relief and Health Care Act of and applied to PMI policies granted in From until , PMI premiums were deductible.

However, in Congress decided not to renew this piece of legislation and you could no longer deduct PMI.