6. Property Tax Deduction
Once you become a homeowner, you’ll have to get used to making payments to your local real property tax. However, there’s some good news too. You might be entitled to deduct these taxes on your federal income tax return.
But, yeah, this comes with several headaches. First of all, if you want to deduct local and state property taxes, you’ll have to itemize. If you choose to do so, make sure you deduct them on line 5b of Schedule A, Form 1040.
Read also: What Taxes in Retirement Look Like in All 50 States
Plus, anything over $10,000 can’t be deducted.
