Jane Dotson
If you are a homeowner, you may be eligible for a mortgage interest deduction. TurboTax users have reported that the platform did not ask about their mortgage interest. This could be because the program does not know which is better until it knows what your itemized deductions are. It is also possible that the deduction for mortgage insurance premiums is not available for the current tax year. To enter your mortgage insurance and interest, you can sign into TurboTax and click on 'Deductions & Credits'.
| Characteristics | Values |
|---|---|
| Reason for TurboTax not asking about mortgage insurance | The program doesn't know which is better until it knows what your itemized deductions are |
| Mortgage insurance premium | Included with mortgage interest on the tax return |
| How to enter mortgage insurance | Search for "PMI" and click the "Jump to" link. Follow the screens to enter your mortgage insurance and mortgage interest |
| Mortgage insurance deduction | Only available until 2020 or 2021 |
| Mortgage interest deduction | Not available if the proceeds of a home mortgage are used to purchase tax-exempt income |
| Mortgage interest deduction eligibility | Available for homeowners |
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What You'll Learn
- The mortgage insurance premium is included with mortgage interest on the tax return
- The law allowing the mortgage insurance premium deduction is under review
- The extra deduction for private mortgage insurance ended in 2021
- Contact your lender if you don't know the amount of mortgage insurance paid
- The mortgage insurance premium deduction was available through the 2020 tax year
The mortgage insurance premium is included with mortgage interest on the tax return
If you are a homeowner, there is a good chance you are eligible for a mortgage interest deduction. The mortgage insurance premium is included with mortgage interest on the tax return.
To enter your mortgage insurance and interest, sign into your TurboTax Online account and click 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.
If you do not know the amount of mortgage insurance you paid, contact your lender. If the tax break is approved, TurboTax will automatically update your return. If it is approved after you file, TurboTax will let you know so you can amend your return.
Please note that the extra deduction for private mortgage insurance is not available after 2021. In the past, there has been a deduction for mortgage insurance premiums, but the law that would allow this deduction is still under review. The mortgage insurance premium deduction is available through tax year 2020.
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The law allowing the mortgage insurance premium deduction is under review
The Bipartisan Budget Act of 2018 allowed homeowners to claim the mortgage insurance premium deduction for 2017 retroactively. The Further Consolidated Appropriations Act of 2020 extended the deduction for 2018, 2019, and 2020. The Consolidated Appropriations Act of 2021 further extended the deductions through December 31, 2021.
The deduction was not allowed for taxpayers with an AGI over $109,000 or $54,500 for married couples filing separately in 2021. While the deduction expired at the end of 2021, there have been attempts to reinstate it. The Mortgage Insurance Tax Deduction Act of 2023 was introduced but did not progress beyond the introduction stage.
In 2025, efforts will be made to convince lawmakers to reinstate the deduction. TurboTax users have reported issues with the platform not asking about mortgage insurance. However, TurboTax has provided instructions for entering mortgage insurance and interest into their returns.
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The extra deduction for private mortgage insurance ended in 2021
The private mortgage insurance (PMI) deduction was a tax provision that allowed homeowners to write off their insurance premiums for tax years 2018, 2019, 2020, and 2021. This deduction was especially beneficial for homeowners who had put down less than 20% of the purchase price of their homes, as they were required to pay PMI until they had built up 20% equity.
The Further Consolidated Appropriations Act of 2020 allowed PMI tax deductions for 2020 and 2021, and retroactively for 2018 and 2019. However, this deduction was not extended beyond 2021, and it expired at the end of that year. As a result, homeowners can no longer claim a deduction for PMI premiums on their federal income taxes starting from the 2022 tax year.
While the PMI deduction is no longer available, homeowners may still be able to benefit from other tax deductions, such as the mortgage interest deduction and state and local real estate tax deductions. Additionally, in February 2025, a new bill called the Mortgage Insurance Tax Deduction Act of 2025 was introduced, which aims to bring back the PMI tax deduction.
TurboTax users who are looking to enter their mortgage insurance and interest can do so by following these steps: signing into their TurboTax Online account, searching for "PMI", and clicking the "Jump to" link. They can then follow the screens to enter their mortgage insurance and mortgage interest.
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Contact your lender if you don't know the amount of mortgage insurance paid
If you don't know the amount of mortgage insurance you paid, you can contact your lender to find out. Mortgage insurance lowers the risk to the lender of granting you a loan, allowing you to qualify for a loan that you may not have otherwise been eligible for. It is typically required for borrowers who make a down payment of less than 20% of the home's purchase price and on Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) loans. The cost of mortgage insurance is included in your total monthly payments to your lender, your closing costs, or both.
Once you have the information about your mortgage insurance payments, you can enter them into TurboTax. The mortgage insurance premium is included with mortgage interest on your tax return. To enter this information, 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 while mortgage insurance deductions have been allowed in the past, the law permitting this deduction may be under review for the current year. Therefore, your lender may not have reported it on your 1098 form. However, you can still enter the mortgage insurance premiums you paid into TurboTax.
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The mortgage insurance premium deduction was available through the 2020 tax year
If you are a homeowner, you may be eligible for a mortgage interest deduction. This can be done by signing into your TurboTax Online account and following the instructions. Search for "PMI" and click the "Jump to" link, then follow the screens to enter your mortgage insurance and mortgage interest details.
If you do not know the amount of mortgage insurance you paid, you can contact your lender to find out. TurboTax will automatically update your return if the tax break is approved. If it is approved after you file, you can amend your return.
It is important to note that if you used the proceeds of a home mortgage to purchase tax-exempt securities or certain insurance or annuity contracts, you cannot deduct the mortgage interest.
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Frequently asked questions
TurboTax should ask about your mortgage insurance. If it didn't, it might be because the program doesn't know which is better until it knows what your itemized deductions are.
Sign into TurboTax 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.
Contact your lender to find out the amount. If the tax break is approved, TurboTax will automatically update your return.
Yes, you can enter the Mortgage Insurance Premiums you paid in TurboTax. However, the law that allows this deduction is under review and the deduction is only available through the 2020 tax year.
If you are a homeowner, there is a good chance you are eligible for the mortgage interest deduction. However, you cannot deduct the mortgage interest if you used the proceeds of a home mortgage to purchase tax-exempt securities or certain insurance or annuity contracts.
