Spring has arrived in the Brazos Valley! The sun is shining, flowers are blooming, and the birds are singing. What better to top it all off with than… sitting down to do our taxes? Oof – it’s definitely not our favorite way to spend a beautiful day! But tax season is once again upon us, regardless. For homeowners, there are a few important things to know going in, to help you maximize your deductions and minimize your payment due.
If you are not very familiar with preparing your own tax forms, we recommend using an online or in-person tax preparation services that can help you make sure you have prepared your tax forms correctly and in a way that maximizes your return. (Contact one of our agents if you’d like a recommendation for a good tax preparation service.)
Federal Income Tax Return
One nice thing about living in Texas is that we do not have state income tax, so you only need to prepare a federal income tax form. Homeowners should know that there may be deductions available to you that you’re not aware of. When you do your taxes, you’ll be given the option of itemizing your deductions or claiming the general deduction. You should choose whichever is higher. For most people, claiming the general deduction ($12,550 for single filers, and $25,100 for married couples filing jointly for 2021 taxes) is the way to go. However, if you suspect you may have deductible expenses exceeding the general deduction, get out your receipts and your calculator – you may be able to save some money. Some possible deductions available to homeowners include:
- Energy-efficient updates
- Home office expenses (for self-employed folks)
- Home improvement receipts (only applicable for the tax year in which you sell your home)
- Home mortgage interest deduction
- Home equity loan interest deduction (if spent on home improvements)
- Property tax deduction
- Discount points deduction
- Casualty losses
- Medically necessary home improvements
- Moving expenses
- Second home
- Mortgage insurance premiums (expired 2017 but extended through 2021)
Property Taxes
Your federal income tax is one thing, but homeowners also need to pay property taxes. In Brazos County, homeowners should receive a property tax assessment in the mail sometime in April. Not all homeowners are aware that you can very often have your tax assessment reduced by protesting it. A real estate agent can very easily provide you with a list of home sales comparable to yours which, if they sold for less than the appraisal district has estimated your home’s value, may help you successfully protest for a lower property value assessment. This can be done quite simply online; there should be directions for doing so on the assessment you receive in the mail.
Not many people enjoy tax time, but going into it knowledgeably helps! We hope that the information shared here will help you prepare your taxes to your maximum benefit. For more great tips, check out our Blog, or Contact Us today.
