Owning a home has long been considered an important part of achieving financial stability. But it’s not just about having something to call your own, or even building equity; owning a home can also have some significant tax benefits as well. If you’re considering buying a home, you can take advantage of local tax incentives that can help you save thousands each year. Let’s take a look at how owning a home in Southern Maryland can help you maximize your tax savings.

 

Property Tax Relief Programs

Homestead credits are often available for senior citizens and disabled persons who occupy their primary residence. The credit is based on income level, age, and disability status and could result in an average savings of $150-$200 per year. Additionally, there is often  also a property tax credit available to low-income homeowners who meet certain criteria. This credit can provide up to $1,500 in property tax relief for qualified individuals and families each year.

 

Mortgage Interest Deduction

Another key benefit of owning a home is the ability to deduct mortgage interest payments from your federal income taxes each year. As long as you itemize deductions on your annual return, you can deduct up to $750,000 of mortgage interest payments made during the course of the fiscal year. That could lead to significant savings when filing your taxes. Additionally, if you purchased points when obtaining your mortgage loan — or paid any other qualifying fees related to the loan — those costs may also be deductible. Be sure to consult with a professional financial advisor or accountant if you need more information about these deductions.

 

Tax Deductions on Home Improvements

Finally, another great way for homeowners in Southern Maryland to maximize their tax savings is through deductions for home improvements made during the fiscal year. Whether you make major renovations like upgrading your kitchen or bathroom, or simply do small repairs around the house such as replacing windows or doors, all associated costs may be eligible for deduction when filing taxes at the end of the year (up to certain limits). This is another reason why it pays off big-time to own property in Maryland.

 

Owning a home in Southern Maryland doesn’t just give you access to excellent schools, parks, and recreation areas; it also puts more money back into your pocket every April! With property tax relief programs that are specifically designed for seniors and low-income families, mortgage interest deductions, and home improvement deductions – there are plenty of ways that homeowners here can save lots of dollars on taxes every single year. Don’t miss out on these great benefits – start exploring homes for sale today.