Is PMI Tax Deductible?

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The federal tax deduction for private mortgage insurance was only available from 2007 through the end of 2013. You can go back and amend older tax returns to take advantage of it, but you can't use it in 2014 or later.

Qualifying Policies

Most lenders require that you carry private mortgage insurance, or PMI, if you put less than 20 percent down on a new home purchase. The insurance effectively guarantees your mortgage in the event that you default. If you purchased your home or refinanced your mortgage between January 1, 2007 and December 31, 2013, you can deduct these premiums if you itemize on your return. Qualifying policies include those provided by the Department of Veterans Affairs, the Federal Housing Administration and the Department of Agriculture Rural Housing Service, as well as private insurers.

Income Phase-Outs

You can't claim the PMI deduction if your adjusted gross income was $109,000 or more in 2013, or $54,500 if you were married and filed separately. If your AGI was more than $100,000 -- or $50,000 if you were married filing separately -- your deduction drops by 10 percent for every $1,000 over these limits.

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