Mortgage Insurance is Tax Deductible for 2013

Home owners who acquired their home after 2006 and who have mortgage insurance may be able to treat the mortgage insurance premiums as they would their mortgage interest deduction when they file their 2013 income taxes. This is per IRS Publication 936.

Here are some basic requirements:

  • the mortgage must be “aquistion debt” (from purchasing a home)
  • mortgage insurance must have been issued after 2006
  • private mortgage insurance, FHA upfront and monthly mortgage insurance, VA funding fees and USDA guarantee fees are eligible
  • if your adjusted gross income (line 38 on your 1040) is more than $100,000 (or $50,000 if you’re filing status is married filing separately), the amount you can deduct may be reduced and/or eliminated. Adjusted gross incomes over $109,000 (or $54,500 for married filed separately) are not eligible for this deduction.

The amount you paid for your mortgage insurance premiums should be disclosed on the Form 1098, along with the mortgage interest you paid. You will receive this form from your mortgage servicer (where you make your mortgage payments to). If you do pay mortgage insurance and it is not disclosed on your Form 1098, you may need to contact your mortgage servicer.

Remember, I’m a mortgage professional, my specialty is helping people buy and refinance their homes in Washington state. I am not an income tax expert. For more information, please contact your CPA or tax advisor.

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