Can You Deduct Mortgage Insurance Premiums In 2021

The deduction for mortgage insurance premiums is available until the 2020 tax year. The deduction won’t be available after 2021 unless Congress extends it.

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Mortgage insurance premiums.

The itemized deduction for mortgage insurance premiums has been extended through 2021. You can claim the deduction on line 8d of Schedule A (Form 1040) for amounts that were paid or accrued in 2021.

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A deduction for mortgage insurance premiums is only permitted if all of the following are true:

  • You paid or accrued premiums on a qualified mortgage insurance contract issued after Dec. 31, 2006.
  • The mortgage is acquisition debt for a qualified residence (a new mortgage).
  • You itemize your deductions.
  • Even if you fulfill the requirements listed above, the deduction for mortgage insurance premiums will be as follows:

  • Reduced by 10% for each $1,000 your adjusted gross income (AGI) is more than one of these:
    • $100,000
    • $50,000 if married filing separately
  • Eliminated if your AGI is more than one of these:
    • $109,000
    • $54,500 if married filing separately
  • The deduction for mortgage insurance premiums is available until the 2020 tax year. The deduction won’t be available after 2021 unless Congress extends it.

    If you need assistance managing an estate, we can help. H&R Block can help you prepare taxes for a loved one who has passed away.

    Learn more about the five most popular tax deductions with the help of the professionals at H&R Block, from retirement account contributions to self-employment expenses.

    With the help of the professionals at H&R Block, go through your list of life events to see how each can affect your tax return, such as getting married, having a baby, or purchasing a home.

    Learn the ins and outs of deducting non-cash charitable contributions on your taxes from the pros at H&R Block if you’re donating household items to your favorite charity.

    FAQ

    Can I deduct mortgage insurance premiums 2022?

    There are some limitations if you earn more than a certain amount annually, but you can itemize your tax deduction for the amount you pay for private mortgage insurance (PMI).

    What mortgage insurance premiums are tax deductible?

    Yes, private mortgage insurance (PMI) premiums are deductible as part of the mortgage interest deduction through tax year 2021. Be aware of the phaseout limits, however. When AGI reaches $109,000, the deduction completely expires. It starts to phase out at an AGI of $100,000.

    Are insurance premiums tax deductible in 2021?

    Because these regular payments are considered medical expenses, some health insurance premiums are deductible on federal taxes. In general, you can deduct the cost of your medical insurance from your taxes if you pay for it yourself.

    Is PMI still tax deductible?

    If certain conditions are met, private mortgage insurance may be written off as a tax deduction. The MIP and PMI tax deductions were extended by Congress in 2019 for 2020 and 2021 (and beyond), as well as retroactively for 2018 and 2019.