Don't Forget PMI Mortgage Insurance Is Deductible

As April 15 tax day approaches, here is a reminder for home buyers with PMI mortgage insurance. Home owners with adjusted gross incomes of $100,000 or less can deduct the full cost of their government or private mortgage insurance premiums on their 2007 federal returns. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction. This is a new tax break that Congress has approved through 2010. On average, this year's tax break could be worth $350 per taxpayer — an annual deduction that qualified home owners can take each year through 2010. Be sure to ask your tax consultant about this deduction.