Did you buy a house or refinance your mortgage last year? If so, you may qualify for a new deduction.
Homeowners may be able to deduct mortgage insurance premiums, also known as PMI, that they paid for the year on mortgages taken out or refinanced in 2007 or after. Generally, you pay PMI if you put less than 20 percent down on your home.
The PMI deduction is available if you itemize your deductions on your tax return. The amount of mortgage insurance premiums you paid last year is typically shown in Box 4 of Form 1098.
Homeowners with adjusted gross income of less than $100,000, and who itemize their deductions, can reap the entire benefit of this deduction -- meaning they can deduct all the PMI they paid for the year.
Produced for Jackson Hewitt Tax Service Inc.
