Private mortgage insurance
For people who couldn’t provide a 20% down payment, private mortgage insurance (PMI) is a familiar expense. But if you bought your house in 2007 or afterward, you were given a break if you earned less than a certain amount of money each year. Luckily, that provision is still around. The bill was set to expire in 2014, but two weeks before the end of the year, Congress extended the provision into 2015. So if you bought a home (including vacation homes, but not rental properties) in 2014, or any other year since 2007, you can still deduct PMI from your taxes.
However, the PMI deduction begins phasing out when the adjusted gross income (AGI) of the head of household, married filing jointly, or single earner passes $100,000. For married filing separately, the phaseout begins at $50,000 AGI. The deduction is phased out by 10% for every $1,000 earned over the threshold. If you pass $109,000 AGI (or $54,500 for married homeowners filing separately), the deduction phases out completely. Click here to read more.