What is mip on a 1098

Our website uses cookies for browser optimization and analytics. Please confirm that you accept the use of cookies. Check your inbox or spam folder to confirm your subscription. This change will impact the IRS reporting obligations for financial institutions. Borrowers can treat the premiums paid for qualified mortgage insurance during tax years through as home mortgage interest. Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, the Rural Housing Service and private mortgage insurance as defined in section 2 of the Homeowners Protection Act of , as in effect on December 20, The guidance addresses certain questions regarding the reporting and deductibility of MIP following the reinstatement of the MIP deduction retroactively to under legislation signed into law by President Trump in December Careers Support Get in Touch.

Gerry Nelligan. January 30, Sign up for Email Updates. Correct or Leave for ? However, we encourage you to make that information available to borrowers so that they can decide whether to amend their income tax returns to claim the additional deduction. Taxpayers filing amended tax returns claiming mortgage interest premiums would benefit from having a corrected Form to substantiate their deduction and avoid a matching notice from the IRS.

But at the same time correcting these forms could potentially be administratively burdensome for some banks and they may opt to forgo the corrected filings. It is listed in box 5, separate from the mortgage interest you paid box 1.

However, official IRS documents have not yet been updated to reflect this change for , but of course will be when the annual revisions and updates are put in place on the IRS website. As when the deduction for PMI costs were last regularly available for MI premiums paid though , there were limitations. When available, premiums for mortgage insurance were treated exactly the same as mortgage interest for deduction purposes.

Of course, with the standard deduction raised significantly as a part of the Tax Cuts and Jobs Act of TCJA , many homeowners who might have formerly itemized mortgage-ralated deductions in order to deduct the mortgage interest and PMI premiums they paid now simply take the standard deduction, which simplifies filing returns.

If you are a homeowner age 62 or older and have equity in your home, you may be considering a reverse mortgage as a way to boost your retirement income.

Is mortgage insurance tax deductible?