Nobody loves doing their taxes and giving money back to the state and federal governments. But at the same time, we understand why it's important — that money goes to infrastructure improvements and a wide variety of other things that generally make our lives better.
But that doesn't mean you shouldn't be looking for every tax deduction under the sun available to you, and that is no different if you're renting your home as opposed to owning it. In fact, there are a few key tax deductions available to you as a renter that are worth exploring.
Your Apartment and Tax Deductions
One of the biggest tax deductions that you may have available to you if you're renting an apartment comes by way of the home office deduction. If you work from home and have a dedicated space set up to maximize your productivity, you are likely entitled to a hefty tax break courtesy of Uncle Sam.
All you have to do is take the square footage of the space in question and figure out what percentage of your apartment's total size that space actually is. Then, you're able to claim that percentage of your monthly rent for the entire year on your taxes.
But that's not all — you can't be expected to work from home if you don't have a stable Internet connection or electricity, so you can also extend those savings to your monthly utilities, too. Again, you're working from a percentage — so whatever percentage your home office's square footage is when compared to your apartment's total size is the percentage of your utility bills that you get to write off on your taxes.
Likewise, it's important to note that some states offer a renter's tax credit specifically for people in your situation. It's based on the total amount of money that landlords charge to cover their own property taxes if they own the building. The specifics of this one will naturally vary depending on where in the country you live, so consult your state comptroller's website for more information.
If you'd like to find out more information about the types of tax deductions that you should be taking as a renter, or if you're just eager to learn about some of the incredible newly renovated apartments in Arlington, VA that are available, please don't delay – contact The Citizen at Shirlington Village today.