Tax season is finally here, the time of year we all simultaneously dread and look forward to. Of course, no one looks forward to filing their taxes, but the await of that wonderful tax refund is something a lot of us look forward to throughout the year! When there is a major life change, that tax refund is something that always seems a little bit elusive. Things like having a child, starting a business, and owning/buying a home will all have an effect on the amount of your tax refund. Obviously, you want to capitalize on your taxes and walk away with the biggest tax refund possible, right? If you’re a homeowner, there are a handful of tax breaks you should be aware of!
Energy efficient updates
Have you made any updates to your home in the past year that made your home more energy efficient? Those sorts of efforts are something to be rewarded, and luckily, you can be, via tax breaks. The Renewable Energy Tax Credit will apply to you if you’ve installed a system for renewable energy in your home. This covers things such as solar or geothermal energy. There’s also the Nonbusiness Energy Property Tax Credit, and this covers things from insulating your attic, to replacing your HVAC system. Check out the IRS website to see if you qualify.
Property Tax Deduction
If you have high local property taxes, check and see if you qualify for a tax deduction! This deduction applies to State and Local Taxes (SALT) and has a cap of $10,000.
Mortgage Interest Deduction
Did you know that any interest you pay on your mortgage is tax deductible? This deduction caps out at mortgages of 750k. As long as your mortgage falls under that amount, you can take advantage of this tax deduction!
Medical Home Improvements
Have you had to make any changes or updates to your home this year to accomodate to the medical needs of yourself or any family members? You qualify for deductions to help you cover the costs of these additions to your home, whether it’s a wheelchair ramp, an intense water filtration system for someone with low immune function, or installing better lighting to accomodate someone with failing eyesight. However, you can’t deduct any of these costs if the addition added to the overall value of your home. Make sure you do your research and check the IRS website before filing for this deduction!