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?
The tax on the investment income in excess of $1,700 (may change after 2007) of a child under age 18, based on the parents’ marginal tax rate and computed on Form 8615.