Well it’s GOOD NEWS FRIDAY folks!!  With the passage of American Tax Payer Relief Act of 2012, Congress extended into 2013 the ability to deduct mortgage insurance paid monthly premiums for private mortgage insurance, FHA monthly mortgage insurace, USDA monthly mortgage insurance and the funding fees for VA, Native American and USDA loans.  The amount you will be able to deduct depends upon your adjusted gross income (AGI) for the year.  From the chart below, provided by MGIC mortgage insurance provider, someone with an AGI of $100,000 can deduct 100% of the amount, while someone with an AGI up to $109,000 can only deduct 10%. 

The deduction applies to “qualified residences,” as defined in the Internal Revenue Code. Typically, that includes a taxpayer’s primary residence and a second home that is not rented out.  It is available whether you purchased your home or refinanced it and have mortgage insurace.

The mortgage insurance deduction amount available should be on a 1098 interest statement from the mortgage servicer.

Disclaimer- I am NOT a CPA and do not even pretend to be one on TV.  Therefore I cannot and will not provide you tax advice as to your qualification for this deduction.  For thorough accounting/tax advice, please contact your CPA.  If you don’t have a CPA, I know a great one!  Call me at (405) 256-5110 and I’ll be happy to pass along the information.