Common Mistakes Homeowners Make On Their Taxes
Tax season is amongst us which means many homeowners are getting ready to file their taxes if they have not yet done so already. Unfortunately, there are many mistakes homeowners make on their taxes that can lead to a wide range of problems down the road. Gathered is a list of tax mistakes to avoid:
- Many homeowners make the mistake of deducting the wrong year for their property taxes. It is important that you take these tax deductions in the year that you paid them.
- Do not make the mistake of confusing your escrow amount for the actual taxes paid. It is important that you deduct only the amount of property taxes listed on Form 1098 that your lender sent you.
- If you have a home office and qualify to take advantage of a new simplified home office deduction option, you may have the opportunity to deduct $5 for every square foot, up to 300 feet.
- If you purchased a new home and took advantage of the first-time homebuyer tax credit, you may need to repay your reward.
- Make it a habit to keep your home-related expenses well-compiled and organized. This will provide you with ease should the IRS come a-knockin’!
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