Digging through piles of paperwork and receipts is not the perfect way to spend your day, but with tax deadline looming ahead, it is unavoidable.
If you are a homeowner, digging through those receipts may get your deductions you never thought about and even save thousands in taxes this year. Here are a few tax breaks you can easily claim if you are a homeowner.
This is one of the most common breaks for taxpayers. It allows the taxpayer to reduce their taxable income by the amount of interest paid on the loan for their residence.
Real Estate Taxes
An important tax break for homeowners is a deduction for local property taxes, which can be substantial depending on where they live. This is more common than mortgage interest as not every homeowner has a mortgage but everyone has to pay real estate tax.
Borrowers who do not have 20% equity in their homes are required to carry private mortgage insurance or PMI to protect the lender if the loan defaults. PMI costs 0.5-1 % of the entire loan amount each year, so deducting those payments can add up fast if you have a large loan balance.
Tax Help MD
Are you a home owner and looking for a tax credit for buying a house? No need to look further! Our tax experts at Tax Help MD are here to help you sail through the tax season. Call us now on 888-632-4506 for free advice and consultation.