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šŸ” New Tax Break for Mortgage Insurance Premiums (But With Limits)

šŸ” New Tax Break for Mortgage Insurance Premiums (But With Limits)

Beginning in 2026, the OBBBA may allow taxpayers to deduct mortgage insurance premiums on qualified contracts issued after 2006. These deductions will count as part of your qualified residence interest deduction, what seems to be a potential win for homeowners with mortgage insurance.

But hereā€™s the catch:

The deduction phases out once your AGI exceeds $100,000 ($50,000 if married filing separately).

By $110,000 AGI (or $55,000 MFS), the deduction is completely gone.

  • Translation: Middle-income households could see a modest tax benefit, but higher earners likely wonā€™t qualify.

šŸ’” Planning tip: If your income falls near these thresholds, timing could make a difference in whether you benefit from this deduction.