How to Claim PMI on Taxes
- 1). Check whether you are eligible to claim the tax deduction for PMI based on your adjusted gross income (AGI). If you are a single filer, the limit is $50,000 for a full deduction and $54,500 for a partial deduction. For joint filers, the limit is $100,000 for a full deduction and $109,000 for a partial deduction.
- 2). Calculate the percentage of your PMI you can deduct if you are over the full deduction limit but under the partial deduction limit. If you are not over the limit, skip to Step 3. Single filers lose an additional 10 percent for each $500 they are over the full deduction limit. For example, if your AGI equals $50,700, you would be able to deduct only 80 percent because you are between $500 and $1,000 over the limit. Joint filers lose an additional 10 percent for each $1,000 they are over the limit. For example, if your AGI equals $100,600, you would be able to deduct 90 percent because you are between $0 and $1,000 over the limit.
- 3). Multiply the percentage of your deduction by the amount in Box 4 of your Form 1098 to determine the value of your deduction. If your AGI is below the limit for a full deduction, you can claim the entire amount.
- 4). Write the amount of your deduction on Line 13 of Schedule A. This amount will be deducted from your taxable income.
