MaxGhenis · Oct 7, 2026 · Oct 7, 2026 · Oct 7, 2026 · Oct 7, 2026 · Oct 7, 2026
diff --git a/changelog.d/ky-principal-residence-mortgage-interest.added.md b/changelog.d/ky-principal-residence-mortgage-interest.added.md
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+Add `second_residence_mortgage_interest`, `second_residence_mortgage_points` and `second_residence_mortgage_insurance_premiums` inputs, which join the federal mortgage deduction, and from 2026 cap Kentucky's qualified residence interest deduction at the interest paid on the principal residence (KRS 141.019(2)(j); 2026 Ky. Acts ch. 161 sec. 7, as amended by ch. 198 sec. 48).
diff --git a/changelog.d/points-mortgage-insurance-premium-inputs.added.md b/changelog.d/points-mortgage-insurance-premium-inputs.added.md
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+Add `home_mortgage_points` and `mortgage_insurance_premiums` inputs. Points are deducted as home mortgage interest under the acquisition-debt caps. Qualified mortgage insurance premiums are deducted under 26 U.S.C. 163(h)(3)(E) with its AGI phase-out, in 2007–2021 and again from 2026 (P.L. 119-21, sec. 70108).
diff --git a/...arameters/gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/in_effect.yaml b/...arameters/gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/in_effect.yaml
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+description: The IRS treats qualified mortgage insurance premiums as deductible qualified residence interest if this is true.
+values:
+  1900-01-01: false
+  # Premiums paid or accrued after December 31, 2006, under contracts issued
+  # after that date (P.L. 109-432, sec. 419).
+  2007-01-01: true
+  # 163(h)(3)(E)(iv): no deduction for amounts paid or accrued after
+  # December 31, 2021.
+  2022-01-01: false
+  # P.L. 119-21, sec. 70108: 163(h)(3)(F)(i)(III) turns off clause (iv) for
+  # taxable years beginning after December 31, 2025.
+  2026-01-01: true
+metadata:
+  unit: bool
+  period: year
+  label: IRS mortgage insurance premiums deduction in effect
+  reference:
+    - title: 26 U.S. Code § 163(h)(3)(E) - Mortgage insurance premiums treated as interest
+      href: https://www.law.cornell.edu/uscode/text/26/163#h_3_E
+    - title: 26 U.S. Code § 163(h)(3)(F)(i)(III)
+      href: https://www.law.cornell.edu/uscode/text/26/163#h_3_F_i_III
+    - title: Public Law 119-21, sec. 70108
+      href: https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf#page=93
+    - title: 2021 Instructions for Schedule A (Form 1040), line 8d
+      href: https://www.irs.gov/pub/irs-prior/i1040sca--2021.pdf#page=9
+    - title: 2025 Publication 936, Reminders
+      href: https://www.irs.gov/pub/irs-pdf/p936.pdf#page=1
diff --git a/...gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/phase_out/increment.yaml b/...gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/phase_out/increment.yaml
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+description: The IRS reduces the qualified mortgage insurance premiums deduction for each of these amounts, or fraction thereof, by which adjusted gross income exceeds the phase-out start, based on filing status.
+SINGLE:
+  2007-01-01: 1_000
+JOINT:
+  2007-01-01: 1_000
+SEPARATE:
+  2007-01-01: 500
+HEAD_OF_HOUSEHOLD:
+  2007-01-01: 1_000
+SURVIVING_SPOUSE:
+  2007-01-01: 1_000
+metadata:
+  propagate_metadata_to_children: true
+  breakdown: filing_status
+  unit: currency-USD
+  period: year
+  label: IRS mortgage insurance premiums deduction phase-out increment
+  reference:
+    - title: 26 U.S. Code § 163(h)(3)(E)(ii) - Phaseout
+      href: https://www.law.cornell.edu/uscode/text/26/163#h_3_E_ii
+    - title: 2021 Instructions for Schedule A (Form 1040), Mortgage Insurance Premiums Deduction Worksheet line 4
+      href: https://www.irs.gov/pub/irs-prior/i1040sca--2021.pdf#page=10
diff --git a/...ters/gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/phase_out/rate.yaml b/...ters/gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/phase_out/rate.yaml
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+description: The IRS reduces the qualified mortgage insurance premiums deduction by this share of the premiums for each phase-out increment by which adjusted gross income exceeds the phase-out start.
+values:
+  2007-01-01: 0.1
+metadata:
+  unit: /1
+  period: year
+  label: IRS mortgage insurance premiums deduction phase-out rate
+  reference:
+    - title: 26 U.S. Code § 163(h)(3)(E)(ii) - Phaseout
+      href: https://www.law.cornell.edu/uscode/text/26/163#h_3_E_ii
+    - title: 2021 Instructions for Schedule A (Form 1040), Mortgage Insurance Premiums Deduction Worksheet line 5
+      href: https://www.irs.gov/pub/irs-prior/i1040sca--2021.pdf#page=10
diff --git a/...ers/gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/phase_out/start.yaml b/...ers/gov/irs/deductions/itemized/interest/mortgage_insurance_premiums/phase_out/start.yaml
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+description: The IRS reduces the qualified mortgage insurance premiums deduction when adjusted gross income exceeds this amount, based on filing status.
+SINGLE:
+  2007-01-01: 100_000
+JOINT:
+  2007-01-01: 100_000
+SEPARATE:
+  2007-01-01: 50_000
+HEAD_OF_HOUSEHOLD:
+  2007-01-01: 100_000
+SURVIVING_SPOUSE:
+  2007-01-01: 100_000
+metadata:
+  propagate_metadata_to_children: true
+  breakdown: filing_status
+  unit: currency-USD
+  period: year
+  label: IRS mortgage insurance premiums deduction phase-out start
+  reference:
+    - title: 26 U.S. Code § 163(h)(3)(E)(ii) - Phaseout
+      href: https://www.law.cornell.edu/uscode/text/26/163#h_3_E_ii
+    - title: 2021 Instructions for Schedule A (Form 1040), Mortgage Insurance Premiums Deduction Worksheet line 3
+      href: https://www.irs.gov/pub/irs-prior/i1040sca--2021.pdf#page=10
diff --git a/...eters/gov/states/ky/tax/income/deductions/itemized/principal_residence_interest_only.yaml b/...eters/gov/states/ky/tax/income/deductions/itemized/principal_residence_interest_only.yaml
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+description: Kentucky limits the qualified residence interest deduction to the principal residence if this is true.
+values:
+  # Before HB 757, KRS 141.019(2) ended at paragraph (i) and had no qualified residence interest limit.
+  2018-01-01: false
+  # HB 757 (2026 Ky. Acts ch. 161) sec. 7, as amended by HB 869 (ch. 198) sec. 48, adds KRS 141.019(2)(j) for taxable years beginning on or after January 1, 2026.
+  2026-01-01: true
+metadata:
+  unit: bool
+  period: year
+  label: Kentucky qualified residence interest limited to the principal residence
+  reference:
+    - title: KRS 141.019(2)(j), net income of taxpayers other than corporations
+      href: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57914#page=4
+    - title: 2026 Ky. Acts ch. 161 (HB 757), sec. 7, KRS 141.019(2)(j)
+      href: https://apps.legislature.ky.gov/law/acts/26RS/documents/0161.pdf#page=13
+    - title: 2026 Ky. Acts ch. 198 (HB 869), sec. 48, amending HB 757 sec. 7
+      href: https://apps.legislature.ky.gov/law/acts/26RS/documents/0198.pdf#page=74
Original file line number	Diff line number	Diff line change
		@@ -0,0 +1 @@
		Add `second_residence_mortgage_interest`, `second_residence_mortgage_points` and `second_residence_mortgage_insurance_premiums` inputs, which join the federal mortgage deduction, and from 2026 cap Kentucky's qualified residence interest deduction at the interest paid on the principal residence (KRS 141.019(2)(j); 2026 Ky. Acts ch. 161 sec. 7, as amended by ch. 198 sec. 48).
Original file line number	Diff line number	Diff line change
		@@ -0,0 +1 @@
		Add `home_mortgage_points` and `mortgage_insurance_premiums` inputs. Points are deducted as home mortgage interest under the acquisition-debt caps. Qualified mortgage insurance premiums are deducted under 26 U.S.C. 163(h)(3)(E) with its AGI phase-out, in 2007–2021 and again from 2026 (P.L. 119-21, sec. 70108).