Learn More. This deduction could save you hundreds of dollars -- if you qualify. Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide. The mortgage insurance premium deduction allows certain taxpayers to deduct the mortgage insurance premiums, or MIP, they paid for a particular tax year.
While the mortgage insurance premium deduction can save certain taxpayers hundreds of dollars on their tax bills each year, there are some specific criteria that need to be met to use it. Plus, the availability of the mortgage insurance tax deduction beyond the tax year isn't certain.
In this article, we'll take a look at the details of the mortgage insurance premium deduction and what it could mean for you. Just because you paid PMI or another type of mortgage insurance doesn't necessarily mean you can deduct it on your taxes. In order to deduct your qualified mortgage insurance, two things need to be true. You need to itemize deductions on your tax return, and your adjusted gross income AGI needs to be under a certain threshold.
We'll start with itemizing deductions. Ever since the Tax Cuts and Jobs Act went into effect for the tax year, the standard deduction has gone up, while the number of available itemized deduction options have decreased. Here's a look at the standard deductions for the and tax years:. We maintain a firewall between our advertisers and our editorial team.
Our editorial team does not receive direct compensation from our advertisers. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. Bankrate follows a strict editorial policy , so you can trust that our content is honest and accurate. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site.
While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. This content is powered by HomeInsurance. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions such as approval for coverage, premiums, commissions and fees and policy obligations are the sole responsibility of the underwriting insurer.
The information on this site does not modify any insurance policy terms in any way. We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.
Compensation may factor into how and where products appear on our platform and in what order. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.
It has been updated for the tax year. In late , Congress extended an expired tax provision that allows homeowners to deduct private mortgage insurance and other eligible mortgage insurance premiums. The tax break expired at the end of , but the extension allows eligible homeowners to claim the deduction for their , and federal income taxes. Lenders can require PMI for a number of other reasons, too. If married, the spouse must also have been a U.
For information about nonresidents or dual-status aliens, please see International Taxpayers. Conclusions are based on information provided by you in response to the questions you answered.
0コメント