If you paid mortgage insurance premiums in 2026, you may be able to deduct them as part of your qualified residence interest if you itemize deductions on Schedule A. Beginning with tax year 2026 (the return you'll file in 2027), certain mortgage insurance premiums are again deductible for eligible taxpayers.
What counts as deductible mortgage insurance?
The most common type is Private Mortgage Insurance (PMI), but other qualifying mortgage insurance costs may also be deductible. Eligible mortgage insurance can include:
- Private Mortgage Insurance (PMI)
- FHA Mortgage Insurance Premiums (MIP)
- VA Funding Fees
- USDA Guarantee Fees
Income limitations may reduce or eliminate the deduction for higher-income taxpayers.
Who can claim the deduction?
You may qualify to deduct mortgage insurance premiums if:
- The mortgage is secured by your main home or second home.
- You paid qualifying mortgage insurance premiums during the tax year.
- You itemize deductions instead of taking the standard deduction.
- You otherwise meet IRS eligibility requirements.
How do I enter mortgage insurance premiums in the program?
Access your return and go to:
- Federal Section
- Deductions (Select my forms)
- Itemized Deductions
- Mortgage Interest and Expenses
- Private Mortgage Insurance
Your lender may report mortgage insurance premiums on Form 1098, Mortgage Interest Statement, along with your mortgage interest information.
A quick note about itemizing
Mortgage insurance premiums only provide a tax benefit if your total itemized deductions are greater than your standard deduction. If the standard deduction is larger, the software will generally use the standard deduction automatically because it results in a lower tax liability.
What changed?
For several years, the federal deduction for mortgage insurance premiums was unavailable. However, beginning with tax year 2026, qualifying mortgage insurance premiums are once again deductible as part of qualified residence interest for eligible taxpayers.