Filing taxes soon? 7 crucial questions every homeowner should ask now

Filing deadline is close, so many homeowners are rushing to finish their tax paperwork before April 15. Reports say refunds may be higher this year because of new changes introduced under the Trump administration, so filing early could help you get a bigger refund. Many people still have last-minute questions about what they can claim and deduct this year.

Tax strategist Katrina Martin spoke to Realtor.com and answered key questions for homeowners. If you installed solar panels in 2025, you can claim the Residential Clean Energy Credit and deduct 30% of the system cost from federal taxes. This solar credit is being phased out for homeowner-owned systems bought after Dec. 31, 2025 under the “One Big, Beautiful Bill”, as noted by New York Post.

Mortgage and tax deduction

If you itemize, you can deduct mortgage interest on up to $750,000 of debt for loans taken after 2017. For mortgages before 2017, the limit is $1 million. Rental property mortgage interest has no deduction limit. You can deduct property taxes for personal homes and rental properties each year. You must exceed the standard deduction to claim personal property tax deductions.

HOA and retirement rules

The SALT deduction cap increased to $40,000 from $10,000, helping many homeowners, as cited by New York Post. You can also deduct part of property taxes if you use a home office for business. Usually not deductible if it is your main home because it is considered a personal expense. HOA fees are fully deductible for rental properties. You can deduct part of HOA fees if you run a home office and use the actual expenses method. You can still contribute to an IRA for the 2025 tax year until April 15, 2026.

Bigger refund and deadline

IRA contribution limit is $7,000, or $8,000 if you are age 50 or older. 401(k) contributions must be made by Dec. 31 of the tax year, so you cannot add for 2025 now. You can contribute to both a 401(k) and an IRA in the same year. Income level may affect whether your IRA contribution is tax-deductible. Contributing to a 401(k) makes you an active participant, which triggers income phase-out rules for traditional IRA deductions. Roth IRA contributions depend only on income limits, not participation in a retirement plan.

If income is too high, a backdoor Roth IRA may be an option. Tax law changes midyear meant some employers didn’t update withholding tables quickly. This may have caused many workers to overpay taxes during 2025, leading to larger refunds now. Higher SALT deductions also allow more homeowners to itemize and increase refunds. Average tax refund in February 2026 was $3,742, up 10.6% from last year’s $3,382, as cited by New York Post.

A study from Stanford University economists says high gas prices could reduce the benefit of those refunds. Federal tax filing deadline is April 15, 2026. You can file for an extension by April 15. An extension gives you until Oct. 15 to file your return. But an extension does not delay payment if you owe taxes. Interest on unpaid taxes starts from April 15 even if you file an extension.

FAQs

Q1. Can homeowners still get tax benefits for solar panels?

Yes, homeowners who installed solar panels in 2025 can still claim a 30% federal tax credit.

Q2. Can you file a tax extension after April 15?

Yes, you can request an extension until October 15, but any taxes owed must still be paid by April 15.