Chicago Financial Services

PMI Tax Deductions are Back

Private Mortgage Insurance (PMI) was tax deductible, but that law expired…Now it’s back and covers 2015 retroactively.

PMI is required if you only put down a small amount to buy a home, so it protects the lender against default.

A tax package extends for 2015 and 2016 a provision that lets you deduct the cost of your premiums if you itemize your deductions. How much you can deduct depends on your income.

Borrowers with incomes below $100,000 can deduct all of their PMI.  For borrowers with higher gross incomes, it is phased out at 10% increments for each $1,000 of income.

We at CFS Mortgage strive to keep our borrowers up to date on any changes that may impact their lives.  Please give us a call at 312.642.7979 if you have any questions.