Tax season is upon us! As you prepare to file your income taxes, remember to explore the valuable tax deductions available to Illinois homeowners. Deducting property taxes on your federal income tax return can significantly reduce your tax liability. Mortgage interest is another important income tax deduction.
Key property tax deductions to consider include the homeowner's exemption, which provides a substantial reduction in your property taxes. If you qualify for the senior citizen, veteran, or disability exemptions, ensure you're taking full advantage of the property tax relief they offer. These exemptions typically appear on your second property tax bill, usually arriving around September. To confirm that you're receiving all the exemptions you qualify for, visit your county's website. You can typically find information on available exemptions and the application process online. Don't miss out on these valuable savings! Review your property tax information carefully and ensure you're maximizing your tax deductions this year.
If you need help checking give me a call - 708.341.1009.
For homeowners in Illinois, here are some potential tax write-offs or savings to explore:
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Property Tax Deduction:
- Federal Level: Property taxes paid on your primary residence are generally deductible on your federal income tax return.
- State Level: Illinois offers a Property Tax Credit on your state income tax return for taxes paid on your principal residence.
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Mortgage Interest Deduction:
- Federal Level: Interest paid on your mortgage loan is generally deductible on your federal income tax return.
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Home Sale Tax Exclusion:
- You may be able to exclude from your taxable income up to $250,000 of the gain from the sale of your primary residence if you are single, or up to $500,000 if you are married and filing jointly. To qualify, you must have owned and occupied the home as your principal residence for at least two of the five years before selling it.
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Home Improvement Deductions:
- Energy-Efficient Improvements: Deductions may be available for energy-efficient home improvements, such as installing energy-efficient windows, doors, and appliances.
I strongly advise consulting with a tax professional for personalized guidance and to ensure you're taking advantage of all available deductions and credits.
Trevor Hughes
@properties
