Tax season is in full swing, and the April 15th deadline is just around the corner! Getting a head start now means less stress—and potentially a faster refund. If you’re a homeowner, there are a few extra documents you’ll need to have on hand, and they could help you take advantage of valuable tax benefits.
Key Mortgage Documents for Tax Filing:
- Mortgage Interest Statement (1098 Form)
Your lender sends this form by the end of January, detailing how much mortgage interest you paid last year. If you itemize your deductions, this interest may be tax-deductible. If your loan was transferred to a new servicer or you have multiple properties, be sure to check for multiple 1098 forms. - Closing Disclosure (For Recent Homebuyers)
If you purchased a home in 2024, your closing disclosure is an important document to have. Certain costs associated with your closing—such as mortgage points—may be deductible, helping you reduce your taxable income. - Property Tax Statements
Property taxes may be deductible, but they’re not always listed on your 1098 form—especially if you don’t escrow. If you paid them separately, be sure to locate your tax bill or check with your local tax authority. - Receipts for Home Improvements
Not all home upgrades qualify for tax benefits, but some do! Energy-efficient improvements—like solar panels or new windows—may make you eligible for tax credits. Medically necessary modifications, such as wheelchair ramps, may also be deductible. As we’re in the midst of tax season, it’s a good time to gather receipts for any qualifying home improvements to ensure you’re maximizing your benefits.
Maximize Your Tax Benefits
Owning a home can come with financial perks, but tax laws can be tricky to navigate. If you have questions about mortgage-related tax benefits, reach out to your Highlands Residential Mortgage loan officer for guidance.
Don’t have a Highlands loan officer but need more information? We’re here to help! Fill out the form below, and one of our experienced loan officers will be in touch soon.
This information is for general guidance only and not professional tax advice. We encourage readers to consult with a tax professional for personalized advice.
