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Press Release

Tax Tips for Homeowners

Most of the common tax deductions come from homeownership. It can be a complicated process with many deductions that require specific paperwork. Knowing what deductions are available and working with a tax professional can help eliminate costly errors and save you money.

The most common deduction among taxpayers is the mortgage-interest deduction. This deduction has a $1.1 million cap and includes first mortgages as well as mortgages on second homes. You can only claim a mortgage interest deduction on home equity loans that have been used to improve your property. Private mortgage insurance is also deductible. This is not homeowner’s insurance; instead it comes into play with lower-income homeowners who often can’t afford a big down payment. In most cases this insurance is deductible.

2013 is the last year to claim up to $500 in green energy credits. Insulation, energy efficient windows and doors, high efficiency air conditioner and heaters are all possible credits. Unfortunately, these are not applicable if they have been claimed in previous years. There is also a more substantial credit available for solar energy installations as long as they are on your primary residence. You can receive a credit for 30% of the total cost.

“There are many deductions out there for homeowners. Working with a tax professional, such as an Enrolled Agent, can help ensure that you are receiving all of the credits you might not have known about and you are avoiding errors that could lead to penalties from the IRS. You can visit www.maseaonline.org to find an Enrolled Agent in your area,” said INSERT YOUR NAME, member of the Massachusetts Society of Enrolled Agents.

Enrolled agents are America’s Tax Experts. Enrolled Agents hold the highest designation granted by the IRS and also have unlimited rights to represent taxpayers before the IRS. Consumers can easily locate a local EA by going to www.maseaonline.org. They can also call the Massachusetts Society of Enrolled Agents at 1.800.342.0031 for help finding professional tax specialists fully trained and licensed to handle their sensitive financial information.

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The Massachusetts Society of Enrolled Agents is an organization whose principal concern is the honest, intelligent and ethical representation of the financial position of taxpayers before government agencies. Members of MaSEA are also members of the National Association of Enrolled Agents and are required to complete a minimum of 30 hours of continuing professional education each year in the interpretation, application and administration of federal and state tax laws in order to maintain membership in the organization. This requirement surpasses the IRS required minimum of 24 hours per year.