Submitted By: K.
Answered: August 24, 2015 12:44 pm

Are the premiums for job-loss mortgage insurance deductible?

Job-loss mortgage insurance is a policy that pays some or all of the mortgage payments (and, under some policies, real estate taxes and homeowners insurance) if you lose your job. The IRS has not ruled on whether these premiums are tax deductible. Some insurers combine then with mortgage insurance (coverage required when a buyer puts less than 20% down), which arguably could be deductible. (The deduction for mortgage insurance expired at the end of 2014 but could be extended to 2015.) However, job-loss mortgage insurance is more akin to various other types of nondeductible personal insurance, such as disability coverage and credit card protection insurance. Bottom line: who knows?

Tax Glossary

Tax deferral

Shifting income to a later year, such as where you defer taxable interest to the following year by purchasing a T-bill or savings certificate maturing after the end of the current year. Investments in qualified retirement plans provide tax deferral.

More terms