Got PMI? Your Tax Deduction is Back!

Did you know that the SECURE Act, a bill introduced, passed, and signed by President Trump in 2019 is a really big deal? There is so much you need to know! 

The Private Mortgage Insurance (PMI) tax deduction affects many Americans, and not taking this deduction is one of the top mistakes homeowners make when filing their own taxes. So first, let's start with what PMI is. PMI is protection for your lender in case you were to default on your mortgage loan. You may have PMI if the down payment for your home was less than 20% of the price of your home when you purchased it. 

What happened to the deduction? The Schedule A deduction for mortgage insurance premiums (PMI) expired at the end of 2017. So in order to get this tax provision back our government worked hard to pass this bill so we Americans can have it again. 

With the SECURE Act now official in 2020, you can deduct PMI and get a refund back by claiming it on your income taxes if you have been paying your monthly premiums! PLUS, President Trump made this retroactive to 2018. Why? Because the "allowable deduction" expired at the end of 2017. 

Now you’re thinking, “But, I have already filed my 2018 taxes.” A tax professional can review your filed taxes and let you know their observations. The Money Initiative team encourages you to talk to your local tax professional about amending your 2018 tax filing. If you don't have a tax professional that you go to or trust, we invite you to check out our experienced tax consultant.

You can have a personalized one-on-one educational session about your own taxes and circumstances for a small fee. Take advantage of a judgment free, educational, no pressure sales session to learn if it’s worth amending and put money back in your pocket. If you could get back $1000 and learn about some other tax deductions you should be taking, wouldn’t it be worth it? If not, Uncle Sam would love to just keep it. Thinking about taxes is scary, and so your mind may be telling you to not act. So, if you’re a little uncomfortable then pause and take a deep breath. You can choose to either act or ignore it. We encourage you to learn more and live the life you desire!

To learn more, watch this video we made talking about the secure act.

https://youtu.be/1w6XiKpomy0

We would love to talk to you more about the Secure Act.

Contact us at coach@moneyinitiative.com