When many people become homeowners, they feel that they are living the American dream. There are several benefits that people experience when they become homeowners. Some of these benefits come when they file their taxes. Homeowners need to know all of the tax savings that are available to them so that they can save as much as possible. Mark Dicus & Company is here to talk about the ways that homeowners can take advantage of tax savings and credits.
You Can Itemize Your Deductions
One of the biggest benefits to homeowners at tax time is the ability they will have to itemize their deductions. You can still file a standard deduction, but you might find that you can get a larger tax break when you itemize. You just have to make sure that your itemized deductions are higher than the standard deduction is. Here is a breakdown for reference:
– Single: $13,850
– Head of Household: $20,800
– Married Filing Jointly: $27,700
You Can Claim Several Deductions Specifically for Homeowners
There are several deductions that homeowners can take advantage of:
– Property Tax Deduction: For people that are married, you can claim up to $10,000 in property taxes. If you are a single filer, you can claim up to $5,000 in property taxes. Remember, this is only a deduction that can be taken when you itemize.
– Mortgage Interest Deduction: You can lower your taxable income by deducting your mortgage interest on your taxes. This is a deduction that is interest on up to $750,000 of mortgage debt and is the same for married filing jointly, single filers and head of households. If you are married and filing separately, you can only claim up to $375,000.
– Homestead Exemption: For most states, there is a homestead exemption that is supposed to minimize property taxes for homeowners. It is important to stop by your county assessor’s office to ask for specifics because the rules vary from state to state.
Energy Efficient Improvements to the House Are Tax Deductible
When you make energy efficient improvements to your home, it can help you save on your taxes as well. You can save up to 30% on qualifying updates. Not only can you deduct 30% of cost of the update, but you may also be able to deduct 30% of the cost of installation as well. Some of these updates include:
– Electric Panels
– Central air conditioners
– Exterior doors & windows
– Natural gas, propane, or oil furnaces
– Home energy audits
– & More
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are a homeowner that has questions about how to move forward with your taxes this year, you can turn to Mark Dicus & Company to help answer any questions you might have. It is always better safe than sorry when it comes to knowing what you can and cannot deduct on your taxes. Our team of highly qualified accountants are here to help you take advantage of as many tax breaks as possible to help save you money. Call us today!