Homeowners can take advantage of some nice perks this tax season.
Here’s what to know if you’re renting your home.
Do renters qualify for a federal tax credit?
On a federal level, the IRS doesn’t offer a universal tax incentive for all renters.
The foreign housing deduction is the closest thing to a federal deduction available for renters.
So, if you’re reading this and aren’t living in the US, that’s good news.
But that doesn’t apply to many people.
According to theAssociation of Americans Resident Overseas, around 5.5 million Americans live abroad.
Can renters take the home office deduction?
“Exclusively” is the critical part there, though.
Most of the time, W-2 remote workers won’t qualify for the deduction.
Do states offer any tax deductions, credits or rebates?
Even if your state offers the benefit, not all renters qualify for a renter’s deduction or credit.
In some places, your income needs to be extremely low to qualify.
In New York, for example, youcannot make more than $18,000.
Other state programs are geared toward senior citizens.
In Montana, for instance,renters need to be at least 62 years oldto qualify.
Some states have more lenient requirements.
How much is a renter’s tax credit worth?
How do you claim a renter’s tax credit on your state return?
For example, in California, you’ll claim the credit when filing your state return.
In other states, however, you may need to submit an program with the Department of Revenue.
Be mindful that the software deadlines may not follow federal tax deadlines.
In Connecticut, for example,renters apply for the creditbetween April 1 and Sept. 30.
To prepare for the2024 tax filing season, check out CNET Money’stax explainers and tax software reviews.
