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Itemized Deductions Schedule-A


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Old 03-22-2011, 12:42 PM
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Can I Claim Mortgage Insurance Premiums not listed on 1098

I received my 1098 from Wells Fargo Bank & noticed that the Mortgage Insurance Premiums box 4 was $0.00. I have paid MIP over the Year. i have the monthly statements to prove it. Can I claim the MIP even though they didn't list it? Why didn't they list it on the 1098? I call Wells Fargo & the custmer service rep said he is not sure, maybe it wasn't enough to file per govt standard. Please advise if I can claim the MIP I paid.



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Old 03-23-2011, 09:45 PM
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“ Can I claim the MIP even though they didn't list it?”---> Yes you can. You can deduct each year’s premiums paid on PMI for your principal residence and for a non-rental second home; as you said, your mortgage holder may report the mortgage insurance paid by you during the year on Form 1098. As long as you paid qualified mortgage insurance on a contract issued after 2006, you may be able to deduct the insurance as an itemized deduction on 1040 Sch A line 13. You can deduct your MIP only if you itemize your deductions on Sch A. However, don’t pay PMI a day longer than you must. Canceling the insurance as soon as you’re entitled can save you thousands of dollars.
“ Why didn't they list it on the 1098?”---> The mortgage interest statement you receive should show not only the total interest paid during the year, but also your mortgage insurance premiums paid during the year, which may qualify to be treated as deductible mortgage interest. Your lender should enter total premiums of $600 or more received, including prepaid premiums, for qualified mortgage insurance. Qualified mortgage insurance is mortgage insurance under a contract issued after December 31, 2006, and provided by the Department of Veterans Affairs, the Federal Housing AdministrationI guess you need to contact your lender so that you can let themknow it.



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Old 04-12-2011, 10:45 PM
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Question

I had the same issue, I paid about $150 in PMI in 2010 that my mortgage company did not include on my 1098. When I called them and asked about it, they told me that my PMI was only deductible for the first year of my mortgage. Since my mortgage was issued in 2009, they told me only my 2009 PMI was deductible. When reading the Sched A instructions it says “These fees can be deducted fully in 2010 if the mortgage insurance contract was issued in 2010." Should I assume my mortgage company is correct and that my 2010 PMI is not deductible since my contract was issued in 2009?



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Old 04-13-2011, 12:58 AM
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“When I called them and asked about it, they told me that my PMI was only deductible for the first year of my mortgage.”---->I guess it depends; for instance, in 2010, if you paid a lump-sum premium for insurance provided by FHA or a private mortgage insurer that also covers years after 2010, then you must determine the portion of the premium that pays for insurance for 2010 by dividing the total premium by the stated term (number of months) of your mortgage, or 84 months, whichever is shorter. Multiply that amount by the number of months during 2008 that your home was covered by the mortgage insurance. Enter the amount allocated to 2008 in the worksheet for Schedule A, Line 13, to figure your deduction for 2008. You figure your deduction in later years based on the amounts allocated to those years. If your mortgage is satisfied before the end of your allocation period, you cannot deduct the amounts that are allocated to periods after the mortgage is satisfied.
“ Since my mortgage was issued in 2009, they told me only my 2009 PMI was deductible. When reading the Sched A instructions it says “These fees can be deducted fully in 2010 if the mortgage insurance contract was issued in 2010.”" Should I assume my mortgage company is correct and that my 2010 PMI is not deductible since my contract was issued in 2009?”---->I guess so; you can only deduct premiums allocated to a specific year, rather than the year in which you paid them. For example, if you pay your PMI for January 2011 in December 2010, you would deduct those premiums on your 2011 tax return.PMI deduction will only be available for 12 months. As the borrower, you are required to pay this, usually as a monthly addition to your mortgage payment. The first year it is usually paid up front at the closing. Some lenders spread the PMI premium over the life of your loan and add that amount to your monthly payment as said above. Other lenders offer you the ability to prepay the entire PMI amount required for the loan upfront or roll it into the financed balance.



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