Learn About the Mortgage Insurance Premium Tax Deduction

Now expired, this deduction can't be used on 2022 tax returns.

Rural house in Vermont.

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Mortgage insurance premiums can increase your monthly budget significantly—an additional $83 or so per month at a 0.5% rate on a $200,000 mortgage. In 2006, Congress made these payments tax-deductible to help reduce the burden of these costs. The tax deduction expired after the 2021 tax year.

Here's what you need to know about the mortgage insurance premium deduction.

Key Takeaways

  • The mortgage insurance premium deduction was a temporary part of the tax code beginning in 2006.
  • This deduction is expired, so you cannot use it on your 2022 tax return.
  • In previous years, you could claim the deduction if you itemized your taxes and had an income below the maximum phase-out threshold.

What Is Mortgage Insurance?

Lenders typically require private mortgage insurance when they feel that there's a higher risk of default on the part of the homeowner. Mortgage insurance helps the lender secure the debt in the event of default.

In general, you can expect to pay for mortgage insurance when you can't (or don't want to) put down at least 20% on the property. The insurance policy can be issued by a private insurance company or by the Federal Housing Administration (FHA) or the Department of Agriculture's Rural Housing Administration. The Department of Veterans Affairs (VA) has a one-time funding fee instead of monthly mortgage insurance.

The Legislative Roller Coaster

The Tax Relief and Health Care Act first introduced the mortgage insurance deduction back in 2006. Congress extended it in 2015 when it passed the Protecting Americans from Tax Hikes (PATH) Act, but the deduction expired on Dec. 31, 2016. The extension was good for only one year. 

In 2018 Congress stepped in again. The Bipartisan Budget Act of 2018 retroactively extended the mortgage insurance premiums deduction again through 2017. The Further Consolidated Appropriations Act, 2020 retroactively extended the deduction for 2018 and 2019 and allowed it for 2020.

The Consolidated Appropriations Act in 2021 extended the mortgage insurance deduction for the 2021 tax year, but that's the last year you can take this deduction. It has expired for the 2022 tax year, which is the return you file in 2023.


Deductions for mortgage insurance payments are different from deductions for mortgage interest and real estate taxes—those remain intact.

Historical Attempts to Make the Deduction Permanent

On Jan. 8, 2019, California Representative Julia Brownley introduced the Mortgage Insurance Tax Deduction Act of 2019, which would have permanently enshrined the deduction in the tax code and would have applied to all amounts paid or accrued since Dec. 31, 2017, but it was not passed.

Another attempt to make the deduction permanent occurred in March 2021 with the Mortgage Insurance Tax Deduction Act, but it, too, was stalled in Congress without definitive action.

In December 2021, the Middle Class Mortgage Insurance Premium Act again sought to make the deduction permanent, along with increasing the income threshold for the phaseout of the tax deduction for the 2021 tax year, but it stalled in committee.

Loans That Qualified for Deductions

For 2021 returns, the mortgage insurance premium deduction applies only to loans taken out on or after Jan. 1, 2007. The deduction doesn't apply to returns for the 2022 tax year.

Deductions related to mortgages must be for a home acquisition debt on a first or second home. A home acquisition debt is one whose proceeds are used to buy, build, or substantially improve a residence.

You typically can't rent the second home out—you must use it personally, such as a vacation home you visit in the summer. You might still qualify for a deduction, however, if you treat the second home as an income-producing business asset. Home equity loans wouldn't qualify for the deduction, nor would cash-out refinances. However, refinance loans up to the amount of the original mortgage would have been covered. 

Claiming the Deduction

For tax years in which you can take this deduction, mortgage insurance premiums paid during the year are reported on Form 1098. You should have received this form from your lender after the close of the tax year. You can find the amount you paid in premiums in Box 5. If you and your loan qualify for the deduction, and you're filing a return for a year in which the deduction is allowed, you can deduct this entire amount.

Mortgage insurance premiums were itemized tax deductions. They were reported on line 13 of Schedule A, "Interest You Paid." You can’t claim the mortgage insurance premiums deduction on a return where you claim the standard deduction—you must itemize using Schedule A. 

If you neglected to claim this deduction in previous years, although you could have, you can typically amend your tax return with the IRS up to three years after you file the original return (or two years after you've paid any tax due on that return, whichever is later).

Canceling Your Insurance

It can pay to check your current mortgage balance against your home's fair market value, even if it turns out that you can claim a tax deduction for PMI again. You no longer have to pay private mortgage insurance when your equity in the property exceeds 20%, but it's unlikely that either your lender or the insurer will point that out to you.

No one will voluntarily cancel your policy for you when you hit this magic number, but you can. Be prepared to have your home appraised, or get a value otherwise assigned by a professional, so you can prove that the insurance is no longer required. That way, regardless of whether Congress reinstates the deduction, you'll at least save on monthly costs by canceling your policy.

Frequently Asked Questions (FAQs)

How do I know whether I am eligible for a mortgage insurance tax deduction?

If you are below the maximum income threshold of $109,000, then you can claim a PMI deduction on your 2021 taxes. The deduction does not apply to 2022 taxes (the return you file in 2023).

Will I be able to deduct mortgage insurance premiums in 2022?

The deduction was not extended to the 2022 tax year. Historically it has been extended every year since its initial adoption, but 2021 is the last tax year you can claim this deduction.

How do I claim a mortgage insurance premium tax deduction?

You can only claim a mortgage insurance premium tax deduction if you are filing for tax year 2021 or earlier. You can use Publication 936 to help calculate deductions related to your home mortgage. All amounts paid or accrued in 2021 will be entered on line 8d of Schedule A on your 1040 form.

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  1. Consumer Financial Protection Bureau. "What Is Mortgage Insurance and How Does It Work?"

  2. Department of Veterans Affairs. "VA Funding Fee and Loan Closing Costs."

  3. U.S. Congress. "H.R.6111 - Tax Relief and Health Care Act of 2006."

  4. House of Representatives Document Repository. "Protecting Americans From Tax Hikes Act of 2015," Page 67.

  5. U.S. Congress. "H.R.1892 - Bipartisan Budget Act of 2018."

  6. U.S. Congress. "H.R. 1865 - Further Consolidated Appropriations Act, 2020."

  7. Upnest. "Is Private Mortgage Insurance (PMI) Tax Deductible?"

  8. IRS. "About Publication 936, Home Mortgage Interest Deduction."

  9. U.S. Congress. "H.R.284 - Mortgage Insurance Tax Deduction Act of 2019."

  10. U.S. Congress. "H.R.2276 - Mortgage Insurance Tax Deduction Act of 2021."

  11. U.S Congress. "H.R.6109 - Middle Class Mortgage Insurance Premium Act of 2021."

  12. IRS. "Publication 936, Home Mortgage Interest Deduction."

  13. IRS. "Changes to the Deductibility of Mortgage Insurance Premiums (MIP)."

  14. IRS. "Topic No. 308 Amended Returns."

  15. Consumer Financial Protection Bureau. "When Can I Remove Private Mortgage Insurance (PMI) From My Loan?"

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