Deduction for mortgage insurance premiums as qualified residence interest under Section 102 of the Act
The deduction for certain mortgage insurance premiums has been extended. For federal purposes, taxpayers who choose to itemize deductions are allowed to deduct certain qualified mortgage insurance premiums in tax years 2018, 2019, and 2020. Iowa has not conformed with this provision for tax years 2018 and 2019.
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Iowa treatment for Tax Year 2018: Taxpayers who already filed a 2018 Iowa income tax return should not file an amended Iowa return because of this federal change. If a taxpayer files an original 2018 Iowa income tax return the taxpayer may not include any amount attributable to mortgage insurance premiums as a deduction on the IA 1040, Schedule A, even though such amounts may have been allowed on the federal 1040, schedule A.
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Iowa treatment for Tax Year 2019: Taxpayers should not take a deduction for mortgage insurance premiums on the IA 1040, Schedule A, even though such amounts may have been allowed on the federal 1040, schedule A, line 8d.