Calculation Wrong on Deductions and Credits with PMI included for 2019

[howard-annie]

For the Tax Breaks Section in 2019, the Mortgage Interest and Refinancing calculation only includes property taxes + mortgage interest paid, NOT the PMI/mortgage insurance.  Can someone from TurboTax confirm that this is "updated" and that PMI is being accounted for in the 2019 software.  I do not think it is. 

[KurtL1]

On the current 2019 TurboTax online program the screen to enter the Mortgage Form 1098 Box 5 is available to enter the amount of Mortgage insurance premiums.

On the current updated 2019 TurboTax Desktop software the Mortgage Form 1098 has Box 5 is available to enter the amount of Mortgage insurance premiums.

[howard-annie]

Yes, but that's not the answer- it doesn't account in the screen.  I entered it and it's not additional to the property taxes and mortgage interest.

[ThomasM125]

To be deductible,the mortgage insurance premium would have to apply to a mortgage issued after December 31, 2013 and before January 1, 2017 under the new tax law. Also it would have to be on acquisition debt for a new mortgage.

So, you need to check the dates and other information you put in TurboTax regarding it.

[howard-annie]

It specifically says on the IRS publication: "Mortgages you (or your spouse if married
filing a joint return) took out after December 15, 2017, to buy, build, or substantially
improve your home (called home acquisition debt), but only if throughout 2019
these mortgages plus any grandfathered debt totaled $750,000 or less ($375,000 or
less if married filing separately)."

My mortgage was significant less than $750,000

[KrisD15]

What you say is true, but you cannot have had any home equity or HELC loans that were not used to improve the home. 

If you took an original mortgage on your home before 2017, but at any time refinanced it in any way, and took out cash that was not used to improve the property, the interest is limited.  

According to the IRS:

"Note. Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan. As under prior law, the loan must be secured by the taxpayer’s main home or second home (qualified residence), not exceed the cost of the home, and meet other requirements."

[soniqfreq]

The restored PMI deduction is not being included in my 2019 return either. I entered the PMI into box 5 for 1098, but the deduction is not being entered on Schedule A by TurboTax Premire Web.

I read the revised (January 2020) IRS Schedule A instructions that includes the deduction and I see no reason why it wouldn't be included on my return. 

https://www.irs.gov/pub/irs-pdf/i1040sca.pdf

[KarenJ2]

I entered PMI in both the CD/Desktop version and the Online Premier version of TurboTax.

In both cases the PMI deduction was included in the total mortgage interest.  It may be that what you are seeing is the limit on mortgage interest deduction.

Deducting Mortgage Interest FAQs

[soniqfreq]

Nope. Not over any of the limits.

[JosephF8]

The most likely reason for the limitation is that your AGI exceeds $100,000 ($50,000 if married filing separately)

The deduction phases out over the next $10,000 in AGI essentially meaning that if your AGI exceeds $110,000 ($60,000 if married filing separately) it is not deductible.

[soniqfreq]

AGI is less than $100000, single.

[KrisD15]

Are you getting the points included after you re-entered the 1098's? 

Are the points listed on the older 1098, newer, or both? 

[soniqfreq]

I have re-entered the 1098s multiple times and the deduction has never been included. I even looked for a worksheet or something that would show the amount entered and why it may have been excluded, but I do not see anything like that. All I see is $0 entered on the Schedule A.

Even on the mortgage deduction summary screen it doesn’t have a PMI column or anything indicating it is even a possible deduction...the only deduction columns are interest, prop tax, and points.

[JamesG1]

The deduction for private mortgage insurance was extended by Congress in December 2019.  The tax break will allow eligible homeowners to claim the deduction on their 2018, 2019 and 2020 Federal income tax returns.

TurboTax will update software later in the tax season. Currently the programmers are working on the 2019 updates.

See here.

[soniqfreq]

I heard back from TT. It looks like I was mistaken and PMI didn't calculate for me because I am over the AGI limit.  Hopefully, you all have better luck.