- 1). Compare your modified adjusted to the modified adjusted gross income limits found in IRS Publication 936. As of 2010, you cannot deduct your mortgage insurance premium payments if your modified adjusted gross income exceeds $100,000 ($50,000 if married filing separately).
- 2). Use form 1040 to file your income taxes and choose to itemize your income tax deductions. If you do not itemize your deductions, you cannot deduct your mortgage insurance premiums.
- 3). Report the amount you paid in mortgage insurance premiums for the year on line 13. Your lender should provide you with Form 1098, which shows this amount.
- 4). Report the total of your itemized deductions from line 29 of Schedule A on line 40. This amount will reduce the amount of income subject to federal income taxes.
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