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Best answer by MelaineC

While these ended December 31st, 2016, they were re-introduced for the 2017 tax year via the Tax provisions providing tax relief.  Currently, we are awaiting an update from the IRS as this was placed back into law 2/9/2018.  Remember, Mortgage insurance premiums deduction is only available if all of these are true:

  • The mortgage insurance premium deduction applies only to loans taken out on or after January 1, 2007. 
  • The insurance policy must be for home acquisition debt on a first or second home. 
  • You will itemize your deductions.

However, even if you meet the criteria above, the mortgage insurance deduction will be:

  • 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

When it is updated, you should be able to enter into TurboTax using the instructions below.

  1. Open your return.
    (To do this sign into TurboTax and click the 
    Take me to my return button.)
  2. Search for "PMI" (search button on top right of screen) and click the "Jump to" link.
  3. Follow the screens to enter your mortgage insurance.

[Edited; 2/17/2018]

2 replies

MelaineCAnswer
Employee
June 6, 2019

While these ended December 31st, 2016, they were re-introduced for the 2017 tax year via the Tax provisions providing tax relief.  Currently, we are awaiting an update from the IRS as this was placed back into law 2/9/2018.  Remember, Mortgage insurance premiums deduction is only available if all of these are true:

  • The mortgage insurance premium deduction applies only to loans taken out on or after January 1, 2007. 
  • The insurance policy must be for home acquisition debt on a first or second home. 
  • You will itemize your deductions.

However, even if you meet the criteria above, the mortgage insurance deduction will be:

  • 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

When it is updated, you should be able to enter into TurboTax using the instructions below.

  1. Open your return.
    (To do this sign into TurboTax and click the 
    Take me to my return button.)
  2. Search for "PMI" (search button on top right of screen) and click the "Jump to" link.
  3. Follow the screens to enter your mortgage insurance.

[Edited; 2/17/2018]

June 6, 2019
I'm waiting on this update before I file
Employee
June 6, 2019

Turbotax was updated to allow the deduction for mortgage insurance premiums as of February 22, 2018.  It's included in the entry for mortgage interest.

Remember that the usual rules still apply: there are income limits, and pre-paid lump sum amounts must be spread out over 84 months, you can only deduct the number of months worth that you paid in 2017.  (Up front lump sum amounts for the VA funding fee and Rural Housing Authority are fully deductible, and monthly premiums are fully deductible.)