Mortgage insurance premiums refer to extra mortgage charges levied by lenders on mortgages with smaller down payments. The Internal Revenue Service permits people to deduct these costs as an itemized deduction. However, only mortgage insurance premiums that come from loans issued after 2006 can be deducted, according to the IRS. If your mortgage was taken out in 2006 or earlier, you cannot deduct the premiums. In addition, to claim any itemized deductions, you cannot claim the standard deduction.
Consult your Form 1098 to determine the amount of money you paid in mortgage insurance premiums. The Form 1098 will be sent to you by your lender, and your mortgage insurance premium total will be found in box 4.
File your income taxes using IRS Form 1040. You must use Form 1040 or you cannot itemize your deductions, and therefore cannot deduct your mortgage insurance premiums.
Report the amount of mortgage insurance premiums you paid on line 13 of Schedule A. The amount will be combined with your other itemized deductions and used to decrease your total taxable income for the year. The total of your itemized deductions will be reported on line 29 of Schedule A.
Copy the total of your itemized deductions, including your mortgage insurance premiums, to line 40 of Form 1040. This amount will be subtracted from your adjusted gross income to find your total taxable income.
Based in the Kansas City area, Mike specializes in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."