Congress Passes Mortgage Insurance Premium Deductions for 2015 and 2016

If you are a homeowner who pays a mortgage insurance premium, you’re in luck.  Congress has passed a law which may allow you to write off mortgage insurance payments for 2015 and 2016.

To qualify, you must have either a conventional loan that is eligible for sale to Fannie Mae or Freddie Mac, an FHA loan, a VA loan, or a Rural Housing loan backed by the Agriculture Department.  Moreover, your adjusted gross income must be $100,000 or less (or $50,000 or less if married and filing separately).  If your income is greater than that, you can still write off the mortgage insurance premiums, but they will be phased out until you hit $109,000 (or $54,900), after which point you will no longer qualify.

A large number of homeowners are expected to qualify for this incentive, easing the tax burden nationwide.