PMI - Schedule A

[Yardley CPA]

It's going to take a little while to get used to the new "Postcard" 1040.  Much harder to navigate the Schedules then when everything was presented on the two page 140. 

Where do you input the PMI on ATX Schedule A?  Do you just add it to the mortgage interest without reflecting it separately?  Last year it had its own line.   

[jklcpa]

That deduction expired on 12/31/17.  No mention of an extender provision as far as I've heard either.

[jklcpa]

Ok, revision to talk about possible change in its status:  For whatever this is worth to anyone, I found that there was a bill introduced in the House on 1/8/19 to make this a permanent deduction and includes amounts paid or accrued in 2018, so it would be retroactive.  This bill was referred to the Ways & Means committee the same day. Nothing beyond that, and no idea if this will pass. 

"H.R.284 - Mortgage Insurance Tax Deduction Act of 2019"  https://www.congress.gov/bill/116th-congress/house-bill/284/titles

 

I have only a few that had this deduction, and some of those may be using the new higher standard deduction anyway.  I'll have to weigh the potential impact since DE still allows itemizing if using the std for Fed.  If of any significance, rather than extend the returns, my recommendation will most likely be to file and amend if this is enacted but that decision is ultimately the client's.

 

Edited February 2, 2019 by jklcpa
fixed a typo, no change in content

[SaraEA]

I have no faith that congress will agree on anything in the near future, so I'd go ahead and file.  However, keep a list of clients who lose out on perks that might someday be retroactively extended (PMI, energy credits, tuition and fees adjustment etc).  That way you'll know who to amend this summer.  I wish we did that last year when sometime in Feb congress passed the extenders.  We don't have an early season clientele and had only done 70-80 1040 returns, but we had to go back and look at every one to see if they were affected.  Of course there were those who got corrected 1098s from their banks.  Are the banks this year putting PMI on the 1098 just in case?  Congress does just not realize or care about all the extra work they make for banks, IRS, and preparers when they can't get their act together before tax season.

[Jack from Ohio]

I thought that PMI deduction expired on 12/31/17, and has not been revived.  Therefore, no place to put the deduction for 2018.

[Catherine]

But I know what you mean; I had to look three times to find out where a client's alimony deduction came off.