Tax Day is tomorrow. If you bought, refinanced, or simply owned a home in 2025, a few line items are worth a final look before you file. None of this is tax advice — it is a checklist to take to your CPA, who knows your full picture.
The big one: mortgage interest
Your lender sends a Form 1098 reporting the mortgage interest you paid during the year. If you itemize, that interest is generally deductible on acquisition debt up to the current loan-balance limits. Most homeowners only benefit if their total itemized deductions beat the standard deduction, so the 1098 is a starting point, not an automatic win.
Property taxes within the SALT cap
State and local taxes — including your property tax — are deductible when you itemize, but only up to the combined annual cap currently in effect. In higher-tax states many households hit that ceiling on income tax alone, leaving little room for the property-tax portion. Your CPA can tell you whether you are capped out.
Points on a purchase or refinance
Discount points you paid to buy down your rate on a home purchase may be deductible in the year paid. Points on a refinance generally have to be deducted gradually over the life of the loan. The treatment differs, so flag any points you paid. (Any rate or points figures are illustrative and subject to change; nothing here is a commitment to lend.)
Mortgage insurance
The deductibility of mortgage insurance premiums has come and gone with various tax provisions. Whether it applies for the 2025 tax year depends on the law as enacted — exactly the kind of moving target to confirm rather than assume.
What is generally not deductible
A few common misconceptions: homeowners insurance premiums on your primary residence, general utility costs, and most home-improvement expenses are not deductible in the year incurred (though improvements can adjust your cost basis when you eventually sell). Keep improvement receipts regardless.
Keep your paper
Hold onto your 1098, closing disclosure, property-tax bills, and records of any points or improvements. If you are audited, the documentation is what matters, and reconstructing it years later is miserable.
The Alliance take
We are good at mortgage math; we are not tax advisors, and we will not pretend otherwise. The point of this list is to make sure nothing falls through the cracks in the last-minute rush — then let a CPA or attorney apply it to your situation. This is general educational information, not tax or legal advice; consult a CPA or attorney about your return.
If a 2025 refinance left you unsure what is deductible, reach out — we will hand you the documents your accountant needs in one place.