“Can I carryforward my mortgage insurance premium from 2009 and how do I go about doing that?”---> Assume that you purchased your home in May of 2009 and financed the home with a 20-year mortgage. You also prepaid all of the $9,240 in mortgage insurance premium required at the time of closing in May. Since the $9,240 in mortgage insurance premium is allocable to periods after 2009, You must allocate the $9,240 over the shorter of the life of the mortgage, 20 years in this case, or 84 months. Your adjusted gross income (AGI) for 2009 is $76,000. Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2009. For 2010, you can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less.
“ I noticed that you can carryforward mortgage interest but I don't see that as an option for mortgage insurance. Do I just treat the mortgage insurance as interest?”----> You can treat amounts you paid during 2009 for qualified mortgage insurance premium as home mortgage interest. You can deduct mortgage insurance premiums on Schedule A (Form 1040), line 13.