At tax time, your house is not simply a home: it's a giant tax deduction. You get to deduct:

• Your property taxes.
• The mortgage interest on your primary residence, as well as any secondary residence you own.
• The interest on a home-equity loan, regardless of the reason for the loan.
• Points you paid when purchasing the house.
• Home improvements required for medical care.

How Much Can I Save?

The actual amount of money you save on your annual income tax bill depends on a variety of factors, such as:

• Your filing status (single, head of household, married filing jointly, married filing separately)
• Your standard deduction
• Your other itemized deductions
• Your taxable income

Your home-related deductions plus your other itemized deductions must add up to more than the standard deduction, or they won't save you any money.

What Can't I Deduct?

You can't deduct the following payments for your primary residence:

• Dues to a homeowners' association
• Insurance on your home
• Appraisal fees for your home
• The cost of improvements to your home. But keep those receipts: They may help you reduce your taxes when you sell your home.