Homeownership is certainly a substantial financial responsibility, but it is always worth it. Owning something that is yours that you can do with what you want, raise your kids and make memories is priceless; it’s not something you can put into words. What you can put into words, however, is the fact that owning a home is expensive. Fortunately, it does come with a few tax benefits designed to help you save money when it’s time to file your 2015 income tax return, and that makes life just a tiny bit sweeter as a whole. Homeowners, pay attention; I’m telling you that there are a few more than just the few tax deductions you know of simply for owning a home.
You pay them, even if you don’t love it. One way to ensure that you are able to get the credit for this is to claim it, making that substantial payment just a little less painful as a whole. You get to claim this deduction the year you pay it, so be sure to get those taxes paid on time.
You pay a lot of interest on your mortgage, but this does not come as a big surprise to you. Don’t forget to deduct that when you are filing your income taxes for some significant savings. You will receive a mortgage interest statement from your lender at the beginning of the year outlining how much you paid to make claiming this deduction much easier.
First-Time Homebuyer Credit
If you are a first-time homebuyer, you get a nice credit to claim on your income tax return. It’s worth as much as 20% of your interest payments up to $2,000. This is a nice benefit to add to the mortgage interest deduction you can take, putting more money in your pocket.