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Top 9 Most Hassle-Free Deductions on Taxes

August 30, 2022 · Taxes
tax deductions
Photo by docent from Shutterstock

State tax that you paid for last spring

If you owned any sort of taxes when you filed for the 2021 state tax return, you have to remember to include the amount with your state tax itemized deduction when it comes to your 2022 return, besides the state income taxes that were withheld from your paychecks.

Starting with 2018, the deduction for state and local taxes can be limited to a maximum of $10,000 a year.

A horizontal diagram showing the relationship between upfront mortgage points and long-term interest savings over a timeline.
This infographic illustrates the journey from upfront refinancing costs to a break-even point and long-term savings.

Refinancing mortgage points

When you decide on buying a house, you can deduct all the points paid on the mortgage at once. Even so, when you refinance a mortgage, you have to deduct the points on the new loan.

This means that you can deduct 1/30th of the points in a year if you have a 30 years mortgage, which is $33 a year for every $1,000 of the points you have paid.

If you enjoyed reading this article, we also recommend reading: 7 Ways To Get Free Home Repairs (Bonus Free Discounts!)

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3 comments on “Top 9 Most Hassle-Free Deductions on Taxes”

  1. Art says:
    January 12, 2023 at 10:35 pm

    Not this pertains to this article, but when is a dog considered a domestic animal and a cat isn’t in Ohio and require a license.

    Reply
  2. Buck says:
    January 12, 2023 at 3:08 pm

    Can you really deduct reinvested dividends from your income tax?

    Reply
  3. Shirley Sturgis says:
    January 12, 2023 at 12:17 pm

    Thank you for sharing this informative information !!!

    Reply
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