PMI, along with other eligible forms of mortgage insurance premiums, was tax deductible only through the 2017 tax year as an itemized deduction.
In 2017, the amount you could deduct was limited if your adjusted gross income exceeded $100,000 (or $50,000 if married filing separately).
Can I write off PMI in 2018?
According to Turbo Tax, the mortgage insurance deduction is not available for the 2018 tax year. Obviously, the PMI write-off may not be available for the 2019 tax year, either. If you take that itemized deduction, you can’t write off PMI. If you have more than $24,000 in write-offs, consider taking the PMI deduction.
How do I deduct PMI from my taxes?
The deduction for PMI cuts your taxable income by $1,500. If you’re in the 12% tax bracket, you save $180 on your tax bill ($1,500 x 12%), and if you’re in the 22% tax bracket, you save $330 ($1,500 x 22%).
Is mortgage insurance premium paid at closing tax deductible?
The mortgage insurance deduction is back — at least through 2020. But only if you itemize. If you paid a really big upfront mortgage insurance premium at the closing table, you may be able to recoup some of that cost by deducting your payments on your federal income tax return. You must itemize your taxes to claim it.
What deductions can I claim for 2020?
Before we go any further, consider that taxpayers can choose the standard deduction, or they can itemize, whichever is most beneficial for them on their 2020 tax return.
And there are four main itemizable deductions:
- Mortgage interest.
- State and local taxes (SALT).
- Medical expenses.
- Charitable contributions.