We are officially in Tax filing season and many homeowners need to be sure they benefit from all of mortgage related tax deductions. One of those tax benefits is the ability to deduct Mortgage Insurance premiums. Homeowners need to be sure they are eligible to deduct their mortgage insurance by checking with the IRS or with a CPA/Tax professional.

Banks require borrowers to carry mortgage insurance if their down payment is less than 20%. This insurance is designed to protect the lender in case the homeowner defaults. Mortgage insurance is often referred to as PMI or MI.

To help the distressed economy and housing market, Congress created a tax deduction for mortgage insurance starting in 2007. This mortgage insurance tax deduction recently expired on December 31, 2011. Therefore, if you purchased a new home in 2012 you will not be able to deduct your mortgage insurance.

Please consult a tax professional or CPA to confirm your eligibility.