Washington, DC - Many consumers will enter this year’s spring home buying season with a new tax deduction that can put extra money in their pockets when they file their taxes next year. The reason: a new federal tax deduction allows many qualified families to write-off premiums for private and government mortgage insurance on loans that close in 2007.

This is the first time that homeowners with low down payment loans will be able to deduct the cost of their mortgage insurance premiums, resulting in an average annual tax savings ranging between $300 and $350 for taxpayers taking the deduction.

Under the new law, passed by Congress and signed by President Bush late last year, private mortgage insurance (PrivateMI) premiums are fully tax deductible for borrowers who buy or refinance a home this year if their adjusted gross income is $100,000 or less. Families with incomes of more than $100,000 and up to $109,000 will be eligible for a reduced deduction.

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Ten that are often missed include mortgage points, prepayment penalty, job-related moving expenses

Have you ever forgotten to claim a real estate tax deduction? I did. Years ago, after I filed my income-tax returns, I remembered a mortgage interest deduction of about $4,500, which I totally overlooked. To claim my refund, I had to file IRS Form 1040X to amend my tax return.

As a result, I learned the IRS hates to part with tax dollars already collected. Just so you never make a tax-deduction mistake like that, here are some of the most-forgotten real estate tax deductions:

1. Deduct loan-fee points paid for a home mortgage. If you bought a house or condo in 2006 as your principal residence, you probably paid the mortgage lender loan-fee points. One point equals 1 percent of the amount borrowed.

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