There have been many questions regarding the private mortgage insurance tax deduction, including the question on whether it still exists. The good news is even though it was ended at one time; it has been extended and is still available in 2013. Before you get excited, you need to make sure you qualify for the tax deduction.
What is the PMI?
The Private Mortgage Insurance is the amount of money you pay in mortgage interest each year when you file taxes. The PMI is the protection for the lender when people purchasing the home put down less than twenty percent.
How it Works?
When you file your taxes, you will see a section that talks about Interest You Paid. You will have the choices of home mortgage interest reported and not reported, and then you will see a line that says Mortgage Insurance Premiums. This is where you would put the amount of PMI you paid during the year.
What are the Qualifications?
Just like any credit, there are several qualifications you must meet before filing. The first is it is only for the amount you paid from January first to December 31 of the year you are filing for. You must have either bought or refinanced a home in that year. Your adjusted gross income, AGI must have been less than 100 thousand dollars to receive a full deduction, and less than 109 thousand dollars for a reduced deduction.
This are many tax credits and deductions that can be beneficial to many if you have recently purchased a home or already own one.
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