Definition: The word "can mortgage insurance be deducted on taxes" refers to whether or not the amount a homeowner pays for mortgage insurance can be claimed as income tax deductions from their home loan payment. The term "mortgage insurance" typically includes insurance premiums paid by homeowners when they take out mortgages, including rates and other costs associated with securing the mortgage. In most cases, this is considered taxable income (in the form of interest earned on the principal amount of the mortgage). However, if the homeowner chooses to pay for their mortgage insurance under a tax-advantaged program or through a deduction plan, the amount they pay can be treated as an additional "earned" income in computing their taxable income. This means that any portion of this expense (including interest) could potentially be deducted from your annual tax return. If you are paying for mortgage insurance on a home loan and it is considered deductible under certain circumstances, you will need to consult with your tax advisor or accountant for guidance on what the specific rules may be in your state or jurisdiction.
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