4 Tax Tips For Homeowners

Article By Leanne Potts

If the mortgage interest and other deductions elude you, these strategies might help reduce your tax obligation.

1. Single people may get more tax benefits from buying a house, Liddiard says. “They can often exceed the standard deduction more quickly than can married couples. This is because a house for one is not half the price of a house for two.” You can check how much you’re likely to owe or get back under the new law on this tax calculator.

2. Student loan debt is deductible, up to $2,500 if you’re repaying, whether you itemize or not. However, there are income limitations for this deduction.

3. Charitable deductions and some medical expenses are itemizable. If you’re generous or have had a big year for medical bills, these, added to your mortgage interest and state and local taxes, may be enough to bump you over the standard deduction hump and into the write-off zone. Keep in mind, however, that medical expenses are deductible only the the extent that they exceed 7.5% of your adjusted gross income.

4. If your mortgage is over the $750,000 cap, pay it down faster so you don’t eat the nondeductible interest. You can add a little to the principal each month, or make a 13th payment each year.