Great news! Congress has voted to extend the tax deduction for mortgage insurance (MI) through 2016.
If your mortgage requires mortgage insurance, you can deduct it on your federal income taxes this year and next year.
Who qualifies for the tax deduction?
Borrowers with adjusted gross incomes up to $100,000 can deduct 100% of their borrower-paid MI premiums. Deductions are reduced by 10% for each additional $1,000 of adjusted gross income, phasing out after $109,000.
The threshold for married borrowers filing separately is $50,000 of adjusted gross income per person. Deductions are reduced by 5% for each additional $500 of adjusted gross income, phasing out after $54,500.