I was divorced in January 2010. I refinanced my home but wound up having to take an FHA loan since the house didn't appraise due to market conditions. I was laid off on October 31st of 2010 and received a severance.

In doing my taxes, I was told my PMI would be deductible. It told me I wasn't eligible. Come to find out, the severance pay pushed me out of the AGI bracket to make it deductible.

Is there any way to get around this? It impacted by refund by over $3000.00.

Any insight is appreciated.

“Is there any way to get around this? It impacted by refund by over $3000.00.”---->I guess you may try, to cut your AGI level, to maximize your contributions to your retirement plan,i.e., traditional IRA( if applicable).If you could put money into a deductible IRA you could still lower it, but your income MAY not allow you to do that. The other thing you can try is for you and your spouse( I am NOT sure if you file your return as MFJ/ MFS) to file separately. That way even though your AGI would be above the deduction threshold, yours might not be (or perhaps the other way around -- depends on the individual incomes). You would still get your dedcution. ( half of something is better than nothing, right??).