Is mortgage insurance deductible?
Yes. If the mortgage insurance contract was issued between 2011 and 2015:
- You can usually deduct mortgage insurance premiums for your personal home. You must have paid the premiums in and allocated them to 2015.
- You can't deduct payments for 2016.
- You must allocate any prepaid mortgage insurance to the year it's applied -- not the year it's paid.
- You can only deduct qualified mortgage insurance premiums paid or accrued during these years on new mortgages.
If you paid more than $600 in mortgage insurance, you should receive a Form 1098.
The amount you can deduct is:
- Phased out if your adjusted gross income (AGI) is more than $100,000 -- or $50,000 for married filing separately
- Reduced by 10% for each $1,000 over the bottom of the phase-out range
- Eliminated totally if your AGI is more than $109,000 -- or $54,500 for married filing separately