Tax Season! The Schedule A Form & 6 Home Deduction Traps
HouseLogic.com recently posted an interesting article on the Schedule A Form and 6 Home Deduction Traps that we wanted to share. Be sure to consult with your accountant or a tax professional to see if any of these apply to you! Schedule A is the part of Form 1040 you use to list myriad deductions, and the more moving parts, the more prone you are to misinterpretation. To save you heartache, we asked four tax experts to weigh in on the six most common Schedule A mistakes do-it-yourselfers make. Trap #1: Line 6 - real estate taxes Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes. The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block's Home Seller's Guide to Tax Savings . That will lead you to putting the wrong number on Schedule A. Example: Your monthly payment to the lender: $2,000 for mortgage + $500