2019 PMI not calculating

[howard-annie]

I got my current mortgage on 1/31/2018 with PMI. I know that the IRS publication has 3 requirements:

1. Mortgages you took out on or before October 13, 1987 (called grandfathered debt).

2. Mortgages you (or your spouse if married filing a joint return) took out after October 13, 1987, and prior to December 16, 2017 (see binding contract exception below), to buy, build, or substantially improve your home (called home acquisition debt), but only if throughout 2019 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Exception. A taxpayer who enters into a written binding contract before December 15, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, is considered to have incurred the home acquisition debt prior to December 16, 2017.

3. 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).

I believe I fall under #3- which only states that you took it out after Dec 15 2017 to BUY a home at less than $750k. This mortgage was for $180k. So I think it should still be included. TurboTax is only taking property taxes and mortgage interest, not PMI into account on the deductions page. Am I completely misinterpreting this language?  My AGI is not over $109,000

[DMarkM1]

You appear to be interpreting correctly.  You would qualify under paragraph 3.  Be sure you are reading the TurboTax numbers correctly as well. The PMI would be included as interest deduction while the real estate taxes would be under property taxes. 

After you have entered all the form 1098 info and you get back to summary of "Deductions & Credits" page you should see the total for "Mortgage, refinancing..." section total the interest and applicable PMI.  While the "property tax" section has the real estate taxes.  

if you wish to check the numbers, see page 10 of this IRS publication to aid with the calculation as well as additionally information on the deduction. 

Remember the Private Mortgage Insurance premium deduction begins to phase out for married filing joint incomes over $100,000 until completely phased out at $109,000.  

[hl]

I qualify for the 2019 PMI premium deduction.  I input it into TurboTax as part of my mortgage 1098 statement.  It shows on my worksheet, but is not reflected in my total mortgage interest deduction.  Why?  Is this a glitch?

[DaveF1006]

Look in Schedule A under Qualified Mortgage insurance Smart Worksheet to see if there is a limitation. Look at the calculations and then see if there is an amount in Box G of that worksheet.