Tax Deduction Tip Makes Refunds Larger as Tax Deadline Approaches

April 17 is the deadline for all Americans to file their federal income taxes. If you are among those who wait until the last minute to file, you likely are not expecting a big refund, and may expect to have to pay taxes. To help reduce the amount of taxes you have to pay, experts offer some tips for major deductions which can make a big difference.

Perhaps the largest deduction for most middle class tax payers is the deduction for your mortgage interest. For most, this is a deduction of ten to twenty thousand dollars depending on the amount of your mortgage and your interest rate.

According to data from the Joint Committee on Taxation, more than 33 million families benefitted from the mortgage interest deduction in 2010 and that these households saved a collective $83 billion on their tax bills.

To get the most out of your tax refund and reduce any tax payment as much as possible, experts stress the importance of taking the deduction for both your mortgage interest as well as your property taxes. Property taxes are another often substantial tax deduction which is sometimes overlooked.

If you have someone prepare your taxes, they should know enough to include these tax deductions when they prepare your taxes for filing. If you file yourself, most tax software, including free tax filing options like the IRS.gov freefile efile service and those offered by companies like TurboTax and H&R Block, run tax payers through a series of questions and should cover all of the major tax deductions including mortgage interest and property tax.