Tax Season is Here: What Homeowners Need to Know About Deductions
As tax season approaches, homeowners across the country are wondering what deductions they can claim on their returns. With the IRS accepting tax filings starting January 26th, it's essential for homeowners to understand their options and take advantage of the benefits available to them.Mortgage Interest Deduction Remains a Key Tax Break
One of the most significant tax deductions for homeowners is the mortgage interest deduction. However, since the 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction, fewer people have claimed this benefit in recent years. Despite this, it remains an option for taxpayers who itemize their expenses, including mortgage interest, state and local taxes, and charitable donations.
Standard Deduction Limits Apply
For single filers, the standard deduction for 2025 is $15,750, while married couples filing jointly can claim up to $31,500. Homeowners must carefully consider their individual circumstances and expenses to determine whether itemizing or sticking with the standard deduction makes more sense.
Expert Advice: Prepare Thoroughly
According to Kate Wood, a lending expert from NerdWallet, every homeowner's situation is unique, and it's challenging to predict how their deductions will stack up. 'It's hard to say kind of how everything is going to stack up for most homeowners,' she said. To make the most of available tax breaks, homeowners should be prepared by gathering all necessary documents and understanding their individual circumstances.
As tax season begins, homeowners must navigate a complex landscape of deductions and exemptions. By understanding their options and taking advantage of available benefits, they can minimize their tax liability and maximize their savings. With the IRS accepting tax filings starting January 26th, it's essential for homeowners to act quickly and take control of their financial situation.
