Due to the 2019 Disaster and Tax Relief Act, the PMI deduction is now available for tax years after 2017!
Mortgage Insurance Premiums you paid for a home where the loan was secured by your first or second home may qualify for the PMI deduction. Box 5 of Form 1098 shows the amount of premiums you paid in 2020.
Private Mortgage Insurance is considered an itemized deduction and will not impact your return unless your itemized deductions surpass your standard deduction. With the significant increase in standard deductions beginning in tax year 2018, fewer individuals will be able to itemize on their tax returns.
Beginning in tax year 2018, the new standard deductions are $12,000 for single filers and $24,000 for married couples filing jointly.
In tax year 2019, there is a slight increase for standard deductions to $12,200 for single filers and $24,400 for married couples filing jointly.
Tax Year 2020 standard deduction is $12,400 for single filers and $24,600 for married couples filing jointly.
Tax Year 2021 standard deduction is $12,550 for single filers and $25,100 for married couples filing jointly.
Where do I enter the deduction?
To claim your deduction for Private Mortgage Insurance, please follow the steps listed below:
- Select Federal from the navigation bar on the left
- Select Deductions from the same navigation bar
- Choose to select your forms, then press continue
- Select Itemized Deductions
- Select Mortgage Interest and Expenses
- Select Private Mortgage Insurance (PMI) Deduction