February Homeowners Update

There are two major tax changes that could benefit homeowners this year — and most people don’t even realize they apply to them yet.

Plus, we need to talk about what you should be gathering right now so tax season doesn’t sneak up on you.

If you’d rather watch the full breakdown, you can catch it here.

(And make sure you subscribe so you don’t miss future homeowner updates.)

The Two Big Tax Changes Homeowners Should Know

Even though the bill was signed last year, it’s retroactive, which means it impacts your current filing.

1️⃣ Mortgage Insurance Is Deductible Again

If you purchased with a lower down payment (3%, 5%, etc.), you may be paying mortgage insurance.

That mortgage insurance may now be deductible again.

What to do:

• Look at your most recent mortgage statement

• Find your monthly mortgage insurance amount

• Multiply it by 12

• Provide that number to your tax professional

Do not assume they’ll automatically catch it.

Even great accountants miss things. Always advocate for your money.

2️⃣ The SALT Cap Increase (Big One)

If you make under $500,000 per year, the SALT cap increased from $10,000 to $40,000.

This is huge, especially in:

• High property tax states

• Texas

• Florida

• High-income tax states

Previously, many homeowners stopped providing their property tax bill because they assumed they were capped at $10,000.

Now?

It could make a meaningful difference in your refund.

Make sure your tax preparer has your property tax bill.

Homestead Exemptions: Do Not Miss the Deadline

This is the part many homeowners forget.

In states like Florida, you must file for homestead by March 1st.

The lender does not do it.
The title company does not do it.
Your realtor does not do it.

You do.

And it often requires:

• Driver’s license

• Car registration

• Closing statement

• Proof of occupancy

Even if the tax savings aren’t massive, you want your home officially designated as owner-occupied.

And if you’re a veteran, many states offer additional property tax exemptions.

Go to your county property assessor website and check.

Do not assume you’re automatically enrolled.

Documents You Should Gather Now

If you purchased last year, make sure you have:

• Your Closing Disclosure (closing statement)

• Your annual mortgage statement

• Property tax bill

• Mortgage insurance totals

• Discount point documentation (if applicable)

If you can’t find your closing statement:

• Contact your lender

• Contact your title company

If we were your lender, you could email:
[email protected] 

We’ll send it.

Quick Note on Refinancing

Yes, people are still asking about refinancing.

Sometimes it makes sense.
Sometimes it absolutely does not.

There are lenders pushing predatory refinance offers right now.

Before you sign anything, have a legitimate lender run the numbers.

The last thing you want is to “save money” while actually losing it.

Bottom Line

Homeownership comes with tax advantages, but only if you take advantage of them.

Don’t rush taxes in April.

Start gathering documents now.
Check homestead deadlines now.
Review your property tax exemptions now.

Small steps now can mean more money in your pocket later.