Get these end-of-year home papers together each December, and be prepared for taxes ahead of time in the new year. Inevitably, when tax season hits everyone is scrambling to find all their home’s paperwork. And if you work from home, you’ll need even more. So get started now!
1098 Mortgage Interest Statement
This comes from your mortgage company either via mail, email or a portal. It show the amount of interest you have paid in the past year as part of your mortgage payment each month.
Property Tax Statement
This will come from your county tax assessor’s office and shows the amount of taxes paid on your home in the past year. This is either paid monthly with your mortgage payment or paid at the end of the year separately.
Closing Statement
If you’ve just purchased your home this year, you’ll need your closing statement for taxes, as it will contain some closing costs which could be tax deductible.
Home Improvement Receipts
Make sure you’re saving these every year in the event you sell your home. That’s when they’ll count. In addition, there are several energy efficiency improvements — like solar panels — that can garner a tax credit now.
Home Utility Bills
If you work from home, and use a dedicated home office, you may consider deducting part of your home’s expenses for your home business and this includes a percentage of your utilities. In addition, some home office improvements are tax deductible, so save those receipts.