When I reviewed my HUD-1 statement, I was wondering about the same thing regarding the deductibility of reverse mortgage PMI. While there may be a possibility that PMI from a reverse mortgage may qualify for a deductible mortgage insurance premium under IRS guidelines, it is not automatic. Generally, you will receive a Form 1098 from your lender for deducting the interest on your reverse mortgage. If you have not yet received this form from your lender, you may want to follow up with your lender and inquire about the status of this form; it may still be forthcoming.
Generally speaking, reverse mortgage PMI can be found on line 1 of Schedule A of your individual income tax return (Form 1040) in the section entitled "Mortgage Interest Deduction." The IRS treats reverse mortgage PMI as deductible interest paid on a reverse mortgage; therefore, the IRS has established its own specific rules for determining how much, if any, of this PMI is deductible on your income tax return.
If you would like to see an example and have a clearer picture of how this works, please take the time to read this article Reverse Mortgage Interest Tax Deduction; it has an excellent explanation of how to report reverse mortgage PMI as well as how to report the total amount of reverse mortgage PMI that you may be able to deduct from your taxable income.
