Qualified Mortgage Insurance Premiums
Taxpayers can deduct Private Mortgage Insurance (PMI) premiums paid or accrued during the tax year on Form 1040, Schedule A, Line 13. Private mortgage insurance paid or accrued on a mortgage insurance contract for coverage during 2011 is deductible. Mortgage insurance amounts may be reported to the taxpayer in Form 1098, box 4.
The following qualifications are required in order to deduct PMI:
Payments made during 2011 for qualified mortgage insurance can be treated as home mortgage interest. The insurance must have been in connection with home acquisition debt, the insurance contract must have been issued after 2006, and the taxpayer must have paid the premiums before 2012 for coverage in effect during 2011.