ITA Home. This interview will help you determine if you're able to deduct amounts you paid for mortgage interest, points, mortgage insurance premiums, and other mortgage-related expenses. The tool is designed for taxpayers who were U. The tax deduction for PMI premiums or Mortgage Insurance Premiums MIP for FHA-backed loans is not part of the tax code, but since the financial crisis has generally been authorized by Congress as parts of other bills and "extended" to cover the most recent tax year.
That's the case for tax year , but this may change in the future. The "extenders" in the "Further Consolidated Appropriations Act, " also made PMI premiums retroactively deductible for the tax year , which they previously weren't.
If you filed with itemized deductions on Schedule A back in , you might consider filing an amended tax return , to capture the MI deduction for that year, if it is worth it in your situation. In general, the IRS says you have three years from the date you originally filed to file an amended return. You can find the amount of mortgage insurance premiums you paid on the Form that your lender or servicer sends to you each year.
It is listed in box 5, separate from the mortgage interest you paid box 1. Bill Pascrell Jr. Congress extended the deduction retroactively to cover , along with and So if you qualify for the deduction in , you might be able to file an amended return to claim the deduction and its savings.
The same goes if you qualify for the deduction — you can amend federal tax returns within three years from the date of a timely filing of the original return or within two years after you paid the tax owed, whichever is later. But keep in mind that even if you do qualify for the deduction, it may not make sense to take it.
You can only take the PMI deduction if you itemize your deductions. Deductions can be a useful way to help reduce your tax bill. And although the deduction for private mortgage insurance originally expired at the end of , Congress has extended it for the , and tax years.
To find out if you qualify for the deduction, check your AGI from your tax returns for prior years and run some numbers to determine if your itemized deductions exceed your standard deduction. If you qualify for the deduction and it makes sense to take it, you may consider filing an amended return to take advantage for Congress: H. She has more than a dozen years of experience in tax, accounting and business operations. I would like to subscribe to the NextAdvisor newsletter.
See privacy policy. You may be able to deduct thousands of dollars a year in private mortgage insurance , or PMI, fees from your taxes. In the past few years, the rules affecting the federal tax deduction have changed repeatedly. The deduction expired in , then it was restored in late and retroactively applied to the tax year. The deduction was available for the tax year and extended through the tax year via the Consolidated Appropriations Act.
A PMI tax deduction is only possible if you itemize your federal tax deductions. But there are other restrictions on who can take the PMI deduction. The same income limit applies to single taxpayers or to those who are married filing jointly, Han says, which constitutes a marriage penalty. Keep in mind that the exact figures will depend on your own household income, tax deductions, and PMI payment amounts and might differ from the example.
But all in all, if you already have enough tax deductions that taking an itemized deduction is worth your while, deducting your PMI can save you a couple hundred dollars on top of that. But for most people, taking the standard deduction will be the better deal. Generally, you have up to three years to file an amended return.
If you are considering filing an amended return, you should make sure it makes sense to claim a PMI deduction for past years.
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