Home and Household Tax Deductions
With just a little more than a month left for filing tax returns this year, it’s a good time to think about what things might qualify for an extra deduction. In addition to your mortgage and some loan interest payments, some of your 2015 household improvements might be deductible.
Home improvements eligible for deduction or tax credit include:
- Installation of new storm doors or energy-efficient windows, insulation, air-conditioning or heating systems can qualify for an energy efficiency tax credit of 10% or up to $500 ($200 maximum towards windows).
- Renovations and improvements to your home due to a medical condition may be tax deductible.
- Solar and wind power systems can qualify for as much as 30% of the equipment cost and installation under the renewable-energy tax credit. This credit will continue into next year for systems that are installed before the end of December 2016.
Home office tax deductions:
- Home office deductions for those who work from home can include deductions for expenses relating to a qualified office for things like phone lines, heating, electricity, and renovations as well as a portion of your mortgage interest, property taxes and insurance.
Household education deductions (for children attending college or for your continuing education expenses):
- The American Opportunity tax credit is worth up to $2500 per year for qualifying expenses related to the first four years of higher education. Student must be enrolled in a degree or credential program. The Lifetime Learning Credit, $2000 per year, is not restricted to the first four years of school. There is also a Tuition and Fees Deduction – for up to $4,000.
If any of these items apply to you in 2015, be sure to check with your accountant to see if you are eligible for any of these deductions. Don’t forget to provide documentation. Also, make sure that any improvements to your home are documented for your homeowners insurance. If you have questions about this, please contact our team at Bieritz Insurance in Cooperstown at 607-547-2951 or in Morris at 607-263-5170. We are happy to assist you!