A recent article in USA Today broke down how the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that was signed into law by President Obama will affect employers, employees and homeowners.

Under the new tax law, homeowners can still take deductions on mortgage insurance premiums, the USA Today article states. This provision will be extended through 2011. According to the Mortgage Insurance Cos. of America, the deduction will save borrowers who pay mortgage insurance $300-$350 a year.

In order to qualify for the full deduction, borrowers must have an adjusted gross income of $100,000 or less. Those with an adjusted gross income of $100,000-$109,000 can claim a partial deduction. In addition, borrowers cannot deduct mortgage premiums on home loans that closed before 2007. (Homeowners who put less than 20% down on a home loan have to pay mortgage insurance, which is designed to protect lenders from default.)

On December 17, President Obama signed the 2010 tax act into law which will continue the tax cuts from the George W. Bush administration. The tax cuts were set to expire at the end of this year.