Each year, as April 15th rolls around, many of us find ourselves scrambling to collect those receipts, staying up late, and making sure we get our tax returns correct. We want to make sure we have itemized everything correctly, taken all the proper deductions and we are getting the largest refund we can.
One important deduction that may often be overlooked is that for property taxes paid on real property and real estate. Declaring this tax as a deduction can reduce your level of taxable income and provide a way to enable you to pay less in taxes. So, as a homeowner, how exactly do you apply a property tax deduction?
Decide if you will be using an itemized or standard method of listing your deductions. If you don’t have a lot of deductions to itemize, consider using the standard deduction.
If you are a single head of household filer, or qualify in the widower status, you can qualify for a deduction of up to $500. Those married couples filing jointly may receive up to $1,000.
The amount you pay in property taxes on your home or other real estate can be applied to your federal, state, local, or foreign taxes.
The total amount of property taxes can be deducted on your itemized deductions.
If you find that your itemized deductions are starting to become confusing, it may be time to consult an accountant or other tax professional. Recent changes in tax laws have resulted in many people turning to these professional for help in ensure that their forms are correctly filled out. Using professionals can also help ascertain that all deductions are being taken so that individuals can be assured that they are paying the lowest amount of taxes possible, as well as receiving the biggest refund to which they are entitled.
