Are My Homeowners Premiums Tax Deductible in 2022?

Are My Homeowners Premiums Tax Deductible

When you file your taxes each year, you look for write-offs or deductions that you can use to reduce your tax debt. You can use many of your business expenses as deductions. There are even occasions where you may be able to deduct a portion of your household premiums and other expenses from your yearly taxes. Understanding what counts as a deduction and what doesn’t will help you keep accurate records.

What Are Deductions?

Deductions are expenditures that detract from your income. If you own a business, the money you spend on office equipment, supplies, and utilities would be tax write-offs. If you have a home-based business, you will more than likely have a specific area of your home set aside where you can operate your business and keep all of your inventory in one place. While certain deductions from your home may be claimed, you will not be able to take them all.

When Can I Deduct My Premiums and Deductibles?

Once you have established your business in a specific area of your home, you can determine what percentage of your home’s square footage it occupies. Once you have a percentage, you can deduct that percentage from your premiums, utility bills, and most other household expenses that have to do with the maintenance of the room that is occupied by your home office. If you rent your home out for a few weeks out of the year, you may have the option of deducting your premiums for those months.

Are Denied Claims Tax Deductible?

If you have been affected by a federally declared disaster like a hurricane, flood, or earthquake, and your home insurance claim has been denied, you may be able to claim the damages as itemized deductions. This is often referred to as a casualty and theft loss deduction. You can always appeal the denial but using the losses as a deduction may be your best option.

Common Home Tax Deductions

There are several home tax deductions you can claim from your home. Selling your home may allow you to claim the capital gains deduction if you made a profit on the sale. You can also claim your property taxes, the interest you pay on your mortgage, and even energy-efficient features.

Many of these home tax deductions are quite beneficial when it comes to reducing your tax debt. Most people don’t even realize that these deductions are available to them. When it comes to your home, you do have options. It’s up to you to figure out what they are and how much you are entitled to deduct from your taxes.

Also Read: Is Your Car Insurance Payment Eligible for a Tax Deduction?

If you want to learn more about what you can claim as a tax deduction when it comes to your home, contact the agents at Gee-Schussler Insurance. With our years of experience, we can guide you through the process of determining how much your deductions should be. Understanding how deductions are determined will help you know what is allowed and what is not. Get in touch with us today to know what deductions you are entitled to.

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