Tax trimming starts at home
Now it's time to do the pre-filing preparation that could help you trim your taxable income. Costs related to your home are a good place to start.
Homeowners know the value of a mortgage. Not only does the loan get you into your house, the interest you pay on it is tax deductible. Your lender will send you a Form 1098 with this amount. If you made an extra mortgage payment at the end of last year, make sure that added interest payment is counted.
Mortgage interest isn't limited to your primary residence. If you have a vacation home, interest on that loan will be on a separate Form 1098 and it is just as deductible. And don't forget the interest you paid on a home equity loan.