If PMI is tax deductible does that mean I will get the full amount of PMI I paid throughout the tax year...?

Question

On my tax returns?

Answer 1

Only if the PMI is for a new loan you took out this year. If you were paying PMI on an existing loan that does not count.

OK, so who is eligible to deduct PMI? You can deduct PMI if your adjusted gross income is $100,000 or less (or $50,000 if you are married and filing separately). For adjusted gross incomes between $100,000 and $110,000, the PMI deduction phases out: it’s reduced by 10% for each $1000 that your adjusted gross income exceeds $100,000. If your adjusted gross income is $110,000 or more, the deduction is not available to you.

Remember, though, that the new deduction applies to loans on homes purchased in 2007. It doesn’t apply to loans taken out before this year. You include it on Schedule A - Itemized Deductions and treat it as if it were mortgage interest, and include it along with your mortgage interest.

Answer 2

No, you don't get the full amount back with your refund, if that's what you are asking. A deduction means an amount that is subtracted from your taxable income before your tax is calculated. So if for example you paid $360 in PMI for the year, and were in the 15% tax bracket, your tax savings, assuming that you already had enough to itemize, would be 15% of $360, or $54.

And, as pepilime said, only PMI on new loans is deductible, not on loans that already exist.

Answer 3

no, will add it as a deduction along with your interest and
real estate taxes. your tax preparor will figure the percentage
its the same percent that you pay in income taxes

ex pmi is 50 month x 12 = 600 x 22% = 132 added to your
tax return

Answer 4

no it means you can deduct that amount from your gross income as a deduction.