Can you take your taxes on your home off on income tax for 2024?
March 8, 2025
When it comes to deducting home-related taxes on your income tax return, particularly for 2024, here’s a breakdown of key points:
- Property Taxes:
- You can generally deduct property taxes you pay on your main residence if you itemize deductions on Schedule A (Form 1040).
- However, there’s a limit: the total amount of deductible state and local taxes (SALT), which includes property taxes, is capped at $10,000 per year ($5,000 if married filing separately).
- Itemizing vs. Standard Deduction:
- To deduct property taxes, you must itemize your deductions. This means you won’t be taking the standard deduction. Whether or not itemizing is beneficial depends on if your total itemized deductions exceed the standard deduction amount for your filing status.
- Mortgage Interest:
- In addition to property taxes, you can also deduct mortgage interest if you itemize.
- There are limitations on the amount of mortgage debt for which you can deduct interest.
- Key Considerations:
- It’s crucial to keep accurate records of your property tax payments and mortgage interest.
- If your property taxes are paid through an escrow account, you can only deduct the amount that the lender actually paid to the taxing authority during the year.
- It is always wise to consult with a qualified tax professional for personalized advice, as tax laws can be complex and individual situations vary.
In essence, you can deduct property taxes, but it’s subject to limitations and requires itemizing your deductions.