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Unfortunately there is limitation on the deduction of PMI. For details see http://www.irs.gov/publications/p17/ch23.html#en_US_2012_publink1000296273 (which is the 2012 publication but still applies).
The amount of PMI allowed as a deduction is:
So, paying the PMI will not increase your deductions if your AGI is 120,000.
Hope this helps to know even though it is likely not the answer you would have preferred.
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