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*The results provided in this calculator are based on information supplied by the user and are for purposes of illustration only. Under Federal tax law, mortgage insurance (MI) tax deductibility is based on transactions closed in 2007 and MI premiums paid in and allocable to 2007. Eligible borrowers who file their federal tax returns under "married", "single" or "head of household" designations and have adjusted gross incomes up to $100,000 may claim a deduction on their federal tax returns of 100% of their borrower-paid MI premiums allocable to 2007. Deductions are reduced by 10% for each $1000 that a borrower.s adjusted gross income for the taxable year exceeds $100,000. For married taxpayers filing separately, different rules apply under the Internal Revenue Code. To calculate the estimated federal tax savings associated with deducting MI premiums allocable to 2007, eCompare uses the tax rates supplied by individual users, and in all cases assumes that borrowers. adjusted gross incomes do not exceed $100,000 and that borrowers are eligible to claim the maximum deductions. For Borrower-Paid Super Single and Split Premium payment options, the "Federal Tax Savings - MI Paid at Closing" field on the Results page illustrates the estimated federal tax savings over the life of the MI contract, which eCompare assumes is 8 years. This may or may not be the appropriate measure for your circumstance. Unless Congress decides to extend the MI tax deduction to future years, eligible borrowers will only be permitted to claim a deduction of the portion of their Super Single or Split Premium payments that are paid in and allocable to 2007. The "MI Deduction" field on the Results page illustrates the estimated monthly federal tax savings for MI premiums paid by a borrower on a monthly basis in 2007 and after loan closing. Among other things, individual federal tax savings will vary depending on the size of the loan, and a borrower.s adjusted gross income, tax bracket and filing status.
PMI cannot provide and eCompare is not intended to offer tax, legal or financial advice. Taxpayers should consult their own qualified advisors concerning applicability of this new deduction to their particular circumstances under the Internal Revenue Code and the laws of any other taxing jurisdiction. This information is not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.
