9 Ways to Get Huge Tax Credits

5) Buy a Home

Home owning tax payers can reap the benefits of their milestone life decision by claiming the mortgage insurance deduction. Most home owners who have taken out a mortgage are qualified to deduct all mortgage interest, but the amount is also dependent on the date the mortgage was taken out as well as the amount and how the funds were distributed in the home buying process. A secured debt is also essential in eligibility for the mortgage insurance deduction as it provides official ownership as well as a form of collateral. Mortgage insurance will qualify as an itemized deduction on your tax return if the total Adjusted Gross Income of the home owners does not surpass $109,000 if single or filing jointly, or $54,500 for married couples filing separately in 2016. Private mortgage insurance deductibles can be claimed if 20% or less was paid in the initial deposit for the home.