Can I deduct mortgage insurance premiums paid to the VA in the amount of $9997.50? The software tell me we don't qualify. Why not?

[MargaretL · Accepted solution]

You can deduct Mortgage Insurance Premiums (PMI) paid to the VA loan. There is a limit on a deduction, though, based on your Adjusted Gross Income and filing status.

For federal tax purpoess,  if your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated.  If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums.