As a CPA, one of the most common questions I receive is, “What home-related expenses can I deduct?” Beginning with the 2026 tax year, homeowners have another valuable tax benefit to consider.
PMI Deduction Returns for 2026
If you purchased a home with less than a 20% down payment, you’re likely paying Private Mortgage Insurance (PMI). Under current tax law changes, qualified mortgage insurance premiums are deductible again as an itemized deduction for tax year 2026, providing potential tax savings for many homeowners.
While income limitations and IRS guidance may apply, this change makes it even more important to review your deductions before filing your return.
Common Itemized Deductions Every Homeowner Should Know
If your total itemized deductions exceed the standard deduction, you may benefit from itemizing. Here are the most common deductions available:
- Mortgage Interest – Interest paid on a qualified home mortgage is generally deductible, subject to IRS loan balance limitations.
- Private Mortgage Insurance (PMI) – Beginning in 2026, qualified PMI premiums may once again be deducted by eligible taxpayers.
- State and Local Taxes (SALT) – You may deduct state and local property taxes along with either state income taxes or state sales taxes, subject to the annual federal SALT limitation.
- Property Taxes – Real estate taxes paid on your primary residence and other qualifying properties may be deductible within the SALT limit.
- Charitable Contributions – Donations made to qualified charitable organizations may be deductible when properly documented.
- Medical and Dental Expenses – Qualified unreimbursed medical and dental expenses exceeding the IRS threshold may be deductible.
- Investment Interest Expense – Interest paid on money borrowed to purchase taxable investments may qualify for a deduction.
- Casualty and Theft Losses – Certain federally declared disaster-related losses may qualify for a deduction under current IRS rules.
Should You Itemize?
Many taxpayers automatically claim the standard deduction without realizing that itemizing could produce greater tax savings. Homeowners who pay mortgage interest, property taxes, charitable contributions, medical expenses, and now potentially PMI may benefit from an annual tax planning review.
Every taxpayer’s situation is different, and maximizing deductions requires careful planning throughout the year—not just at tax filing time.
Let Your CPA Help You Keep More of Your Money
Tax laws continue to evolve, creating new opportunities for homeowners to reduce their tax liability. A proactive tax planning strategy can help ensure you’re taking advantage of every deduction available.
If you’re a homeowner or planning to purchase a home, now is the perfect time to review your tax situation and develop a strategy before year-end.
Valora Group CPA is here to help homeowners, families, and business owners maximize deductions, minimize taxes, and plan confidently for the future. Contact us today or call 972-824-9414 to schedule your consultation.
