Homeowner Tax Deductions - 2012 Federal Income Tax

If you have some extra time to spend on your taxes this season, itemizing your deductions could save you some extra money. Of course, you can’t take the standard deduction if you do itemize — so you’ll want to do your homework before submitting the forms. The 2012 standard tax deductions are:

– $5,950 for married couples filing separate tax returns

– $11,900 for married couples filing joint tax returns

– $8,700 for heads of household.

Compare this amount to the total expenses you can itemize. Then, file your taxes using the method that saves you the most money. If you decide to itemize, you’ll need to file the long version of Form 1040 and the Schedule A form. And since filing taxes can be a bit anxiety-producing, we recommend you consult with a tax professional who can help you find appropriate tax deductions – without throwing up major red flags for a tax audit.

Which Expenses Can I Deduct From My 2012 Tax Return?

Mortgage Interest

Deduct the interest you pay with each mortgage payment. During the early years of home ownership, you’ll probably find that a big portion of each payment goes toward your interest – which ends up being a big benefit during tax season.

Deduct Paid Points

If you paid points to a lender in order to get a better rate on your home loan, you’ll be able to deduct those points – but only in the year you paid them. There are a few stipulations regarding this deduction: point payment has to be an established business practice in your local area, the loan must have been used to purchase or build your main home and the points must be within an accepted range.

Property Taxes

Any property taxes you pay to your state and local governments can be deducted from your federal income taxes.

Moving Expenses

If you’ve saved your receipts, you can usually deduct job-related moving expenses.

Energy-Efficient Upgrades

You may be able to deduct certain expenses associated with energy-efficient improvements to your home. These deductions typically include insulation, windows, exterior doors, roofs, central air conditioners, heat pumps and furnaces. There are several stipulations regarding these tax deductions, however – so make sure you consult with a tax professional before filing your forms.