It’s that time of year when people are getting ready to file their taxes. Some people are looking forward to getting money back from their tax return, while others are moving forward with more trepidation. If you are a homeowner, you will be able to take advantage of some specific tax credits and deductions that those who don’t own a home, won’t be able to. Mark Dicus & Company is here to share some tax tips for homeowners to make sure they are taking advantage of these tax deductions and credits that are available to you.
Should I Itemize or Take Standard Deduction?
There are two ways to file your tax return. You can itemize your deductions, or your can take a standard deduction. If you can get a bigger tax break with an itemized deduction, obviously, you would choose that. Some people don’t see much benefit, if at all, you would take a standard deduction. For homeowners, there are certain deductions that you will not be able to take advantage of without itemizing. Working with a tax professional can help you determine which option is better for you and your circumstances.
What are Deductions & Credits for Homeowners?
If you are a homeowner, you can take advantage of these deductions and credits:
– Property Tax Deduction: As a married couple that owns a home, you can deduct up to $10,000 in property taxes. If you are a single filer, you can deduct up to $5,000. Remember, this is only an option for those that itemize.
– Mortgage Interest Deduction: Another deduction that you can take as a homeowner has to do with the interest you spend each month on your mortgage. For those that are single, married or heads of households, you can deduct interest on up to $750,000 of qualified mortgage debt.
– Homestead Exemption: If you are hoping to minimize property taxes with a homestead exemption, you need to make sure that you are meeting all the rules and eligibility requirements for the state that you live in.
– Home Improvement Credits: There are some updates you can make to your home that can help you on your taxes. There is usually a $1,200 limit and this credit can include improvements like a new HVAC system, replacing doors & windows, updating electrical panels, and home energy audits, to name a few.
Which Expense is Not Tax-Deductible for Homeowners?
It should be noted that there are some things that homeowners cannot deduct from their taxes.
– Down payments
– Home depreciation
– Utility costs
– HOA dues
– Home insurance premiums
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have questions about your tax return and the credits or deductions that you’re eligible for, you can turn to Mark Dicus & Company to answer those questions for you. We will help you prepare your taxes and ensure you’re taking advantage of all credits and deductions that will help you avoid leaving money on the table that is rightfully yours. Call us today!