Many renters don’t realize that several tax deductions and credits are available to them. While homeowners get the mortgage interest deduction, renters have other valuable tax benefits.
Renter’s Credit
Some states offer renter’s credits that reduce your tax liability. Check your state’s tax website to see if you qualify.
Property Tax Deduction
If you pay property taxes as part of your rent (especially common in some regions), you may be able to deduct them.
Home Office Deduction
If you work from home, a portion of your rent may be deductible as a home office expense.
Energy Efficiency Credits
Some efficiency improvements made by landlords may qualify tenants for tax credits.
Student Loan Interest
If you’re paying student loans while renting, you can deduct up to $2,500 in student loan interest.
Conclusion
Consult a tax professional to understand what deductions and credits apply to your situation as a renter. Small deductions can add up to meaningful tax savings.
