What You Need to Know about Tax Breaks for Homeowners
If you own a home, there are tax breaks you may qualify for on your income taxes. These tax breaks could help you owe less money in taxes and even help you to get a bigger refund. Do talk to your tax professional about your ability to qualify for these, but consider them all.
Top Tax Breaks
The following are a few of the tax breaks that homeowners may qualify to use on their federal income taxes. You may qualify, if you meet specific qualifications.
- For those with a home equity loan, potential tax deductions may apply up to $100,000 in interest paid during the tax year.
- The First Time Homebuyers Credit, which is up to ten percent of the purchase price of your new home or $8000, is available only for those who purchased a home by May 1, 2010.
- Homeowners paying mortgage interest may be able to deduct it if doing so allows the homeowner to be over the standardized deduction limits. You can claim up to $1 million in itemized deductions this way.
- If you paid mortgage insurance premiums, you may be able to deduct this as well, as mortgage interest, if acquired on or after January 1, 2007.
You can qualify for these or other tax deductions if you are legally liable for a home, not if you are paying mortgage payments for another person. You can still efile if you use these deductions. You may also qualify for other tax breaks, depending on the type of loans and the current tax qualifications. Do check for updated information on new tax breaks as they come out, or when limitations are applicable.