Americantaxservice.org now explains the facts about deducting Private Mortgage Insurance (PMI) for the 2015, 2016 tax season.
Traverse City, MI -- (SBWIRE) -- 09/24/2015 -- Tax specialist Frank Ellis has published a new article on Americantaxservice.org that discusses the process of deducting Private Mortgage Insurance (PMI). Home related tax deductions for 2015, 2016 are explained. According to the author, PMI is added to the purchase price of those who can't afford a 20% down payment on a house, protecting the lender against possible default on the loan.
Ellis reveals PMI can be deducted when filing tax returns. This deduction was part of the Tax Relief and Health Care Act of 2006 he says, and was extended due to the housing market's slow recovery. Congress has extended it for premiums paid up to 2016. The author identifies the policies the deduction can be taken out of and also reveals that PMI is counted as interest by the IRS. Form 1098 shows the latest amounts that can be claimed.
There are several restrictions which are outlined by the article. Time is one; the PMI must be paid on the mortgage on or after January 1st, 2007. Payments prior to that are not eligible while any new mortgages up to 2015 qualify. The author reveals other requirements related to refinancing, second home loans, and personal occupancy.
Income phaseouts are also covered by the author. While there are no restrictions on the amounts of PMI payments that can be deducted, the deduction itself starts getting reduced if the taxpayer/homeowner has an Adjusted Gross Income over $100,000. There are also restrictions for married couples filing taxes independently. Frank Ellis explains additional aspects of the restriction based on the taxpayer's earnings.
The author says the work sheet on Schedule A's directions should help property owners figure out their PMI deduction total. He also mentions H&R Block Online as the solution to finding all the help, forms, and calculations regarding PMI and other tax deductions for homeowners.
For more details and insight on PMI tax deductions, read the full article at
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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