Tax season is finally here! Many homeowners may know what to look for when it comes to tax breaks, but some may not. We’ve listed four deductions that you may qualify for when filing your taxes.
If you bought a house last year, you will be eligible to deduct points you’ve paid towards getting your mortgage. However, if you’ve refinanced your home, you may not have this option to deduct mortgage points. Only 1/30th of the points per year can be deducted on a 30-year mortgage.
Home Energy Efficiency Credits
There are many advantages of being a homeowner around tax season. One beneficial tax break would be energy efficiency credits. When homeowners conserve energy by installing their own water heaters, roofs, doors, etc., your credit worth increases up to 30 percent of the total cost.
Paying for a monthly private mortgage insurance (PMI) payment will allow you to claim the PMI deduction on your federal tax return.
Home Office Deductions
If you conduct business out of your home, you are eligible for the simplified calculation method. This deduction is beneficial to those who work from home. Better yet, it’s an easy process.
As a reminder, always check with a certified public accountant (CPA) for any questions regarding your taxes. To learn more about beneficial tax deductions, click here.
If you’re interested in learning if you could be saving money on your mortgage, contact one of our loan officers for a free mortgage check-up today! Click here to find a Service First branch near you.