Alyssa Lane
If you're wondering where to enter mortgage insurance in TurboTax, you should know that the mortgage insurance premium deduction is only available for tax years up to 2020. Starting in 2021, the deduction was discontinued unless extended by Congress. However, if you are eligible for the deduction, you can claim it if you are claiming itemized deductions and your mortgage is secured by your first or second home. To enter your mortgage insurance in TurboTax, sign into your TurboTax Online account, open your return by clicking on Deductions & Credits, search for PMI, and follow the screens to enter your mortgage insurance and interest.
| Characteristics | Values |
|---|---|
| Mortgage Insurance Premium | Included with mortgage interest on the tax return |
| Mortgage Insurance Premium deduction | Available through tax year 2020, expired in 2022 |
| Private Mortgage Insurance | Fully tax-deductible if the combined household adjusted gross income is less than $100,000 |
| Mortgage Insurance Premium on tax return | Not required, but generally advantageous |
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What You'll Learn
- The mortgage insurance premium is included with mortgage interest on your tax return
- Private mortgage insurance is fully tax-deductible if your household income is under $100,000
- You don't have to enter mortgage insurance premiums, but they are an additional deduction
- The mortgage insurance premium deduction expired in 2022, but was available for tax years before
- To enter your mortgage insurance, search for PMI and click the Jump to link
The mortgage insurance premium is included with mortgage interest on your tax return
If you are using TurboTax Online, you can follow these steps to enter your mortgage insurance and mortgage interest:
Open your return by signing into TurboTax and clicking on "Deductions & Credits". Search for "PMI" using the search button on the top right of the screen and click the "Jump to" link. Follow the screens to enter your mortgage insurance and mortgage interest.
The mortgage insurance premium (PMI) deduction was available through the tax year 2020. Starting in 2021, the deduction is no longer available unless extended by Congress. The Further Consolidated Appropriations Act of 2020 allowed MIP and PMI tax deductions for tax years 2018, 2019, 2020, and 2021 if qualified taxpayers filed amended federal tax returns. Private mortgage insurance is fully tax-deductible if your combined household adjusted gross income is less than $100,000.
You will generally receive a Form 1098 or a similar statement from the mortgage holder if you paid $600 or more in mortgage interest during the year. This form will show the total interest paid during the year, any mortgage insurance premiums paid, and if you purchased a principal residence during the tax year. You don't have to enter mortgage insurance premiums at all, but generally, it will be to your advantage to enter the Mortgage Insurance Premium on your tax return.
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Private mortgage insurance is fully tax-deductible if your household income is under $100,000
Private mortgage insurance (PMI) is a type of insurance often required for homebuyers who put down less than 20% on their homes. The PMI deduction was available for tax years 2018 through 2021 if qualified taxpayers filed amended federal tax returns. However, the deduction expired at the end of 2021 and is not available for the tax year 2024.
If you were eligible for the PMI tax deduction in previous years but didn't take it, you might be able to amend old returns to claim it. The deduction is allowed only if the mortgage on which you paid PMI was taken out on or after January. The PMI deduction is not available for tax year 2024, but there are efforts to convince lawmakers to reinstate it for 2025.
If your household income is under $100,000, private mortgage insurance is fully tax-deductible. This means that you can reduce your taxable income by the amount of PMI you paid. For example, if you paid $1,500 in PMI for the year and are in the 12% tax bracket, you would save $180 ($1,500 x 12%). If you are in the 22% tax bracket, you would save $330 ($1,500 x 22%).
To enter your mortgage insurance and mortgage interest in TurboTax, sign into your TurboTax Online account and click on "Deductions & Credits." Search for "PMI" and click the "Jump to" link. Follow the screens to enter your mortgage insurance and mortgage interest.
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You don't have to enter mortgage insurance premiums, but they are an additional deduction
You don't have to enter mortgage insurance premiums at all. However, mortgage insurance premiums are an additional deduction, and it is generally to your advantage to enter them on your tax return. The most common type of deductible mortgage insurance premium is Private Mortgage Insurance (PMI).
Private mortgage insurance is fully tax-deductible if your combined household adjusted gross income is less than $100,000. Some government-backed loans also have mortgage insurance stipulations. You can claim the PMI deduction for eligible years if you meet the following criteria:
- The mortgage is secured by your first or second home.
- You pay mortgage insurance premiums for your mortgage.
To enter your mortgage insurance and mortgage interest, sign into your TurboTax Online account and click on "Deductions & Credits". Search for "PMI" and click the "Jump to" link. Follow the screens to enter your mortgage insurance and mortgage interest.
It is important to note that the itemized deduction for mortgage insurance premiums has expired as of 2021. The deduction was not extended by Congress for 2022 and beyond, so this insurance isn't tax-deductible from that year on.
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The mortgage insurance premium deduction expired in 2022, but was available for tax years before
The mortgage insurance premium (MIP) deduction, including Private Mortgage Insurance (PMI), expired in 2022 and is no longer available for federal income taxes. However, it was available for eligible homeowners for tax years before 2022.
The Tax Relief and Health Care Act of 2006 introduced the deduction for mortgage insurance premiums, and it has been available for homeowners on and off in the years since. The deduction was extended several times by Congress, including in 2015, 2017, and 2019. The Further Consolidated Appropriations Act of 2020 allowed MIP and PMI tax deductions for tax years 2018 through 2021 for qualified taxpayers.
To claim the PMI deduction for eligible years, homeowners needed to itemize their deductions. The mortgage also needed to be secured by their first or second home, and they had to pay mortgage insurance premiums. Private mortgage insurance is fully tax-deductible if the combined household adjusted gross income is less than $100,000, although there are different limits for taxpayers in different tax brackets.
When using TurboTax, you can enter your mortgage insurance and interest by following these steps: sign into your TurboTax Online account, open your return by clicking on "Deductions & Credits," search for "PMI" using the search button on the top right of the screen, and click the "Jump to" link. From there, follow the screens to enter your mortgage insurance and mortgage interest.
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To enter your mortgage insurance, search for PMI and click the Jump to link
If you are looking to enter your mortgage insurance details in TurboTax, you can follow these steps:
- Sign into your TurboTax Online account.
- Open your return by clicking on 'Deductions & Credits'.
- Search for "PMI" using the search button on the top right of the screen.
- Click on the "Jump to" link.
- Follow the screens to enter your mortgage insurance and mortgage interest details.
It is important to note that the mortgage insurance premium is included with mortgage interest on your tax return. If you have correctly entered the mortgage insurance information, you should see an increase in your itemized/standard deduction amount when viewing the tax summary screen.
Additionally, mortgage insurance premiums are an additional deduction, and it is generally advantageous to enter them on your tax return. Private mortgage insurance is fully tax-deductible if your combined household adjusted gross income is less than $100,000. However, there are some income limits to be aware of, and pre-paid lump sum amounts must be spread out over 84 months.
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Frequently asked questions
While signed into your TurboTax Online account, open your return by clicking on 'Deductions & Credits'. Search for "PMI" and click the "Jump to" link. Follow the screens to enter your mortgage insurance and mortgage interest.
You don't have to enter mortgage insurance premiums at all. However, it will generally be to your advantage to do so, as mortgage insurance premiums are an additional deduction.
The most common type of deductible mortgage insurance premium is Private Mortgage Insurance (PMI). Private mortgage insurance is fully tax-deductible if your combined household adjusted gross income is less than $100,000.
The mortgage insurance premium deduction was available through tax year 2020. Starting in 2021, the deduction is no longer available unless extended by Congress. The PMI deduction expired in 2022.
