Can I deduct PMI in 2021?

The tax deduction for PMI was set to expire in the 2020 tax year, but recently, legislation passed The Consolidated Appropriations Act, 2021 effectively extending your ability to claim PMI tax deductions for the 2021 tax period. In short, yes, PMI tax is deductible for 2021.

In short, yes, PMI tax is deductible for 2021. Then, in 2019 Congress passed the Further Consolidated Appropriations Act, 2020 which not only revived PMI tax deductions, but also allowed you to retroactively take PMI tax deductions for the 2018 and 2019 tax years.

Is PMI tax deductible 2020?

Is PMI deductible? The legislation, signed into law Dec. 20, 2019, not only makes the deduction available again for eligible homeowners for the 2020 and future tax years, but also enables taxpayers to take it retroactively for the 2018 and 2019 tax years by filing amended returns.

How to deduct private mortgage insurance ( PMI )?

You will need to itemize the PMI deduction and use the Schedule A form. Put the amount of PMI paid last year on line 13 (if your income is under $100,000). Exclude any premiums that have been pre-paid for this year.

Can You claim PMI premiums on your taxes?

Not everyone who has PMI premiums can automatically take the tax deduction. To qualify: You received your home loan in 2007 or later. Your mortgage has to be for your primary dwelling or a second house that is not rented out.

When does the tax deduction for PMI phase out?

If your adjusted gross income (AGI) is over $100,000, then the PMI deduction begins to phase out. Between $100,000 and $109,000 in AGI, the amount of PMI you can claim is reduced by 10% for each $1,000 in increased income.

Where do I find PMI on my tax return?

Counted as Interest. Since some property tax payments and mortgage interest exceed the regular deductions that can be claimed, a number of homeowners have to itemize their deductions. You can find the PMI deduction in the 1040 Schedule A under the section “Interest You Paid”, which is on line 13.