Although the filing deadline for income tax returns is well known, homeowners expecting refunds usually want to file as soon as possible. For individuals who own a home, there are nine essential documents to have ready before completing tax forms.
For help with related insurance and paperwork considerations, see Home Buyers: Make Securing Homeowners Insurance a Top Priority.
Documents to gather
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1. Property Tax Statement.
Homeowners may deduct state and local property taxes. Some local statements combine nondeductible items with property tax charges, so confirm the amount reflects only property taxes before claiming the deduction.
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2. Mortgage Interest Statement.
Mortgage interest appears on IRS Form 1098. Many homeowners' largest deduction is mortgage interest, which generally includes points paid at closing and prepaid interest. Include your lender's Form 1098 when filing.
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3. Uniform Settlement Statement.
If you bought or sold a home during the year, the settlement statement from closing lists debits and credits and documents items such as closing costs, discount points, and taxes that affect your tax return.
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4. Moving Expenses.
A move related to a job change may be deductible under specific rules for distance and time; retain receipts or a detailed expense report. Note that meals are generally not deductible as moving expenses.
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5. Home Office Utilities.
Self-employed taxpayers who use part of their home exclusively for business can allocate a portion of utilities and related expenses based on the business-use square footage. Confirm which expenses the IRS allows before claiming them.
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6. Debt Cancellation Statement.
When mortgage debt is cancelled after foreclosure or a short sale, you may receive a Form 1099 showing the cancelled debt amount. The IRS may treat cancelled debt as taxable income unless an exception applies.
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7. Efficient Energy Improvements.
Certain energy-efficient improvements can qualify for tax credits if they meet IRS requirements. Credit availability and eligible items can change, so confirm current guidance before claiming.
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8. Income & Expense Statements for Rentals.
Homeowners who rent part or all of their property should have accurate income and expense records and correct depreciation calculations, since depreciation errors can increase audit risk.
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9. Mortgage Credit Certificate.
If you received a Mortgage Credit Certificate when you bought your home, you may be eligible for a tax credit based on mortgage interest paid; credits generally apply only against tax liability, not to create a refund.
Homeowners often have more complicated returns than renters. The key to reducing hassles is to maximize eligible deductions while avoiding audit flags. For additional homeowner guidance, review Homeowners Policy for Mexico and related resources.
If you want personalized help, you can discuss with an agent about how these documents affect your specific return.
Frequently Asked Questions
What form reports mortgage interest?
Mortgage interest is typically reported on IRS Form 1098 provided by your lender and should be included with your tax return to claim the deduction.
Can I deduct property taxes paid to my city or county?
Yes, state and local property taxes are generally deductible, but verify the statement excludes nondeductible charges before claiming them.
Are moving expenses deductible for all taxpayers?
Moving expense deductions are limited and generally apply only when the move is job-related and meets specific distance and work-duration tests.
What should landlords keep to support rental deductions?
Landlords should keep organized income records, receipts for expenses, and accurate depreciation schedules to support rental deductions and reduce audit risk.