Is PMI tax deductible?


Quick Answer

Private mortgage insurance, or PMI, is only deductible through the 2013 tax year if several qualifications are met. As of 2014, this deduction, which is part of the Tax Relief and Health Care Act of 2006, is set to expire if not extended or renewed by Congress.

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Full Answer

Only those new and refinanced mortgages taken out on or after Jan. 1, 2007, qualify for the PMI deduction. The deduction is decreased by 10 percent for every $1,000 over the AGI when a homeowner's adjusted gross income exceeds $100,000 for single, head of household and joint filers or $50,000 for married couples filing separately. If the homeowner’s AGI exceeds $109,000 or $54,500, the PMI deduction is not allowable. The updated status of this exemption, specific qualifications and filing procedures are available through the IRS website.

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