Effects of Deducting PMI Premiums

• When you claim the PMI premiums as a deduction on your income taxes, you substitute the sum of your itemized deductions for the standard deduction. Though it is highly unlikely your PMI premium deduction will exceed your standard deduction, if the total of your itemized deductions exceeds your standard deduction, deducting the PMI premiums will lower your taxable income. However, if the total of your itemized deductions does not exceed your standard deduction, your taxable income will go down by claiming PMI premiums but not as much as if you claimed the standard deduction instead.