Congress passed legislation extending "a tax provision that allows homeowners to deduct the cost of mortgage insurance premiums from their federal income tax returns until the tax year 2010."
This deduction allows taxpayer's to deduct some or all of their mortgage insurance premiums as an itemized deduction on line 13 of schedule A. But there are some qualifications that need to be met in order for the taxpayer to claim a home mortgage insurance deduction, and these are as follows;
1. The Taxpayers income must be less than $100,000.00 annually for individuals.
2. The Taxpayers home must be purchased between January 1, 2007 and December 31, 2010
3. For Taxpayers earning more than $100,000.00, then that taxpayer can still take a partial deduction.
It is worth noting that this is a temporary tax break in that it is effective for mortgage insurance policies issued on or after January 1, 2007. Also, this deduction is scheduled to expire on December 31, 2010.