Which Homeowner Tax Deductions Can You Claim in the U.S.?

Which Homeowner Tax Deductions Can You Claim in the U.S.?


Which Homeowner Tax Deductions Can You Claim in the U.S.?

Owning a home comes with more than just pride and monthly payments — it can also bring significant tax savings.
Here are the top homeowner tax deductions you may qualify for in the U.S., and how to make the most of them.

🏑 1. Mortgage Interest Deduction

If you itemize your deductions, you can deduct:

  • Interest paid on a mortgage of up to $750,000 (for loans taken after 2017)

  • For older loans (before Dec 15, 2017), the limit may be $1 million

Applies to your primary residence and second home

🏠 2. Property Taxes

You can deduct up to $10,000 ($5,000 if married filing separately) for:

  • State and local property taxes

  • This is part of the SALT (State and Local Tax) cap

πŸ’° 3. Mortgage Insurance Premiums (PMI)

If your income is below certain thresholds, PMI may be deductible:

  • This includes private mortgage insurance, FHA mortgage insurance, and VA funding fees

  • Deduction phases out for higher-income taxpayers

🧾 4. Points Paid on a Mortgage

Points are prepaid interest — and you may be able to deduct:

  • All at once (if for a primary home and you meet IRS rules)

  • Or over the life of the loan (if for a refinance)

🧱 5. Home Office Deduction (if self-employed)

If you use part of your home exclusively and regularly for business, you can deduct:

  • Portion of mortgage interest, utilities, maintenance

Not available for W-2 employees (only for self-employed)

🚫 What You Can’t Deduct

  • Homeowners insurance

  • HOA fees

  • Home improvements (unless they increase medical accessibility or for energy efficiency credits)

πŸ“„ How to Claim These Deductions

  • Itemize using Schedule A (Form 1040)

  • Keep all receipts, 1098 mortgage interest forms, and property tax statements

  • Use tax software or consult a CPA for guidance

πŸ“ Conclusion

If you’re a homeowner in the U.S., don’t miss out on the valuable deductions that can lower your taxable income.
From mortgage interest to property taxes, knowing what qualifies can lead to significant savings.

Always review the latest IRS guidelines — and consider speaking to a tax professional to maximize your benefits.


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