Potential Tax Write-Offs & deductions to Know About as a Homeowner

Once you own a home, you potentially become eligible for certain tax write-offs and deductions that you weren’t before. You may even be able to leverage some tax credits.

But to take advantage of these (and the savings they have to offer), you’ll need the paperwork that got you there — receipts, invoices, statements, and other documentation that proves your eligibility to the IRS.

Are you preparing to file your tax returns? Here are the items you’ll need on hand:

• Mortgage Interest Statement: You may be able to deduct the interest you paid on your mortgage (or a home equity loan or line of credit). You’ll get a statement called a Form 1098 by the end of January of the filing year, which will tell you how much interest you paid in excess of $600.
  
  

• Home Improvement Invoices and Receipts: If you updated your house, there’s a chance that can help your taxes, too. For one, projects that increase your home’s energy efficiency (like adding solar panels or updating your home insulation) could qualify you for an energy tax credit.
  
  

• Property Tax Statement: Property taxes are another potential write-off for homeowners. 

If you run a business out of your house, you can potentially write off expenses related to that, too. This includes utility bills, insurance, and other expenses used in the portion of your home you work in — but it doesn’t apply to working from home for a company. Ultimately, your best bet is to talk to a tax professional to understand how homeownership can impact your taxes. Do you part in gathering all the necessary documentation before your tax appointment or filing your own returns. Do you have questions about your mortgage documents or homeownership? 

For additional information please contact one of our lending partners at GreenState Credit Union at www.greenstate.org/mortgage  

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