On filemytaxesonline.org, tax preparation planner Frank Ellis now explains how one can deduct Private Mortgage Insurance when filing taxes this upcoming season.
December 28, 2015 — Frank Ellis has unveiled important information about deducting Private Mortgage Insurance (PMI). The author says one can do so if they claim PMI deductions on income tax returns. This deduction will expire in the next tax year, he says, unless it’s renewed by Congress, but not taking this deduction is one of the top five mistakes by homeowners on their taxes, Ellis explains.
Next, he reveals who qualifies for the deduction, as not all people who pay PMI premiums do. Factors include having gotten a home loan in 2007 or later, a mortgage for the primary home or second one not rented, and a few adjusted gross income provisions.
The PMI deduction can be itemized on the Schedule A form. How this is done depends on exact income and whether the amount paid is entered on the form directly or on a worksheet. Ellis discusses how much one can save next. It depends on how much is paid in premiums. The author also explains how these payments affect income taxes and uses a few examples to make the point.
Next, he reveals the step by step process, form selection, and choices of deductions and credits available with TurboTax Online. The software checks for errors before filing, he says, and there’s also a link to free tax refund calculators. An ability to import W-2 information into tax returns is mentioned as well.
Ellis clearly focuses on getting a larger tax refund and/or paying less, but also reveals the best way to save is to cancel the PMI. One can do this if they have 20% equity in their home, while lenders have to cancel it once equity reaches 22%.
To gather more insight into deducting Private Mortgage Insurance or canceling it altogether, read the article online at http://filemytaxesonline.org/how-to-deduct-private-mortgage-insurance-pmi-on-your-taxes/.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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