Let's Get Ready For Tax Season! Homeowner Deductions & Credits For 2022
We made it through 2021! That means tax season is right around the corner, and homeowners and families can take advantage of credits & deductions to lessen their overall tax bill and hopefully score a refund.
While tax forms aren't due for a couple of months, the IRS is advising that it's a good idea to get your taxes filed a bit early this year. So while you fill out your forms, keep these deductions and credits in mind.
Homeowner Deductions & Credits
The actual amount of money you save on your income taxes depends on many factors including your filing status, taxable income, other deductions, and your standard deduction amount. But if your home-related & other itemized deductions add up to more than the standard deduction, they could save you money this year!
The following can be eligible for a tax deduction:
- Mortgage interest on your primary residence and a second residence.
- Property taxes , including taxes you may have reimbursed the seller for before you took ownership. (This amount is shown on your settlement sheet.) State and local taxes including property taxes are limited to $10,000 per year.
- Interest on up to $100,000 borrowed for a home equity loan or home equity line of credit (for tax years prior to 2018 only).
- Points you paid (or the seller paid for you) when you purchased a house.
- Home improvements that were required for medical care.
- Residential energy efficiency improvements
What Is Not Eligible?
The following are not eligible for deductions on home expenses in 2021:
- HOA dues
- Home insurance
- Appraisal fees
- Other improvements that don't qualify as medical expenses or energy improvements.
There are dozens of other credits and deductions you may qualify for as well when filling out your 2021 tax return – from charitable contributions and child care expenses to credits & deductions for self-employment, working from home, investing, saving, job expenses, travel, health, loss & theft, energy efficiency upgrades and more! Check out a larger list of credits and deductions here.
From your friends at LW Short Insurance, we're wishing you a smooth and happy tax season!
