2026 Tax Season Checklist: What Homeowners Need to Know

2026 Tax Season Checklist: What Homeowners Need to Know

The 2026 tax filing season officially began Monday, January 26, 2026, and federal taxes are due Wednesday, April 15, 2026.
By now, you should be receiving important tax documents like your W-2s and 1099s. While the deadline may feel far away, getting organized early can make filing easier and help you take advantage of potential homeowner tax deductions.

Form 1098: Your Mortgage Interest Statement

Form 1098 reports the mortgage interest you paid during the previous tax year. Your lender sends this form if you paid more than $600 in mortgage interest.
If you qualify and itemize deductions, mortgage interest may reduce your taxable income.
Key things to know:

• The current mortgage interest deduction limit is $750,000.
• Married taxpayers filing separately may deduct up to $375,000 each.
  
• You’ll receive a Form 1098 for each mortgage you held during the year.
  
• If you refinanced or had multiple loans, make sure you provide all 1098 forms to your tax preparer.
  
• Your bank or mortgage servicer typically sends this form in January.

Deducting Real Estate Property Taxes

You may be able to deduct property taxes paid on your home.
Deduction limits:

• Up to $10,000 total for combined state and local taxes (SALT)
  
• Up to $5,000 if married filing separately

This includes real estate property taxes, state income taxes, or sales taxes.
Property taxes are deductible only in the year they’re paid. Billing cycles may cover multiple years, so it’s important to verify your payment dates.
You can deduct only the portion of taxes for the time you owned the home.
If your lender doesn’t provide totals, check your local tax bill.

Documents for Recent Home Purchases or Refinances

If you purchased or refinanced a home last year, provide your Closing Disclosure (CD) to your tax professional. This document helps identify deductible costs.

Private Mortgage Insurance (PMI)

If you put less than 20% down and paid PMI, you may qualify for a deduction if you itemize deductions or the insurance applies to a new mortgage.
Eligibility depends on your income:

• Deduction begins phasing out when adjusted gross income (AGI) exceeds $100,000 ($50,000 if married filing separately).
  
• Deduction may be eliminated above $109,000 ($54,500 if married filing separately).

You can find PMI amounts on your year-end mortgage statement. For official guidance, see rules from the Internal Revenue Service in Publication 936.

Rental and Investment Property Tax Documents

If you own rental or investment property, you’ll need records of income and expenses to prepare your tax return.
Common documentation includes:

• Rental income received
• Form 1098 for mortgage interest
• Property tax bills
• Homeowners insurance premiums
• Renovation or improvement costs
• Management fees
• Repairs and maintenance expenses
• HOA fees
• Legal and professional services
• Advertising costs
• Realtor or leasing fees

Your tax professional may request additional documentation based on your situation.

Airbnb, VRBO, and Short-Term Rental Income

If you rent out part or all of your home for more than 14 days per year, you must report your gross rental income and track your business expenses. 
This includes:

• Rental payments
• Cleaning fees
• Maintenance charges
• Additional service fees

Some platforms may issue a 1099 if you meet certain income or transaction thresholds, but you are responsible for reporting all earnings regardless of whether you receive a form.

Form 8829: Home Office Deductions for Remote Workers

If you’re self-employed or run a business from home, Form 8829 may allow you to deduct certain home office expenses.
T o qualify:

• Your home office must be your primary place of business.
• You must use a dedicated area exclusively for business.
• Only expenses related to that specific space can be deduc ted.

For example, you may deduct a portion of utilities or rent, but not general home improvements unrelated to your workspace.

Mortgage Forbearance and Tax Implications

If your loan was in forbearance and your lender paid property taxes on your behalf, consult a tax professional to determine whether those taxes remain deductible for your situation.
Tax treatment varies based on repayment arrangements and lender reporting.

Frequently Asked Questions 

When does the 2026 tax season start and end?
The 2026 tax filing season began January 26, 2026, and the federal tax deadline is April 15, 2026.
What is Form 1098 and why is it important?
Form 1098 reports the mortgage interest you paid during the year. If you itemize deductions, this interest may reduce your taxable income.
Can homeowners deduct property taxes?
Yes. Homeowners may deduct up to $10,000 in combined state and local taxes, including property taxes, if they itemize deductions.
Do I need to report Airbnb or short-term rental income?
Yes. If you rent your property for more than 14 days per year, you must report all rental income and related expenses.
Can I deduct private mortgage insurance (PMI)?
Possibly. PMI may be deductible if you itemize and meet income eligibility requirements. The deduction phases out at higher income levels.
What documents should I give my tax preparer after buying or refinancing a home?
You should provide your Closing Disclosure, mortgage interest statements (Form 1098), and records of property taxes paid.
Who qualifies for a home office tax deduction?
Self-employed individuals or business owners who use a dedicated area of their home exclusively for business may qualify.
Should I consult a tax professional about homeowner deductions?
Yes. Tax rules and eligibility vary by situation, so a qualified tax professional can help ensure you claim all available deductions correctly.