When tax season rolls around, everyone is in the same boat with one goal in mind: minimizing tax liability with the hopes of receiving a refund. While it’s important to follow the rules and regulations set forth by the IRS, there are a variety of deductions and credits you can take advantage of.
You won’t qualify for every tax credit and deduction, but there are probably several you can use to improve the likelihood of receiving a refund. Note: it’s important to discuss these deductions and credits with your tax professional before taking advantage.
Do you make a mortgage payment every month? If so, it’s safe to say you pay a good amount of money in interest. Depending on your income, you may qualify for the mortgage interest deduction. On top of this, if you have private mortgage insurance, you can also deduct it on your income tax return.
Even though you need to itemize to claim this deduction, it’s well worth it for most people. Especially those who pay thousands of dollars in interest every year.