Documents Homeowners Need To File Their Taxes for the Maximum Refund

The Internal Revenue Service kicked off the nation’s 2026 filing season on Monday, Jan. 26, 2026.

This filing season is notable because it introduces several new tax law provisions from the “One, Big, Beautiful Bill” that may affect federal taxes, credits, and deductions.

Given this, first-time homeowners and longtime owners alike may find the filing process more daunting this year. Fortunately, tax experts agree that as long as you have the essential documents in hand, you’ll be able to file without much issue.

The most important documents homeowners need during tax season

Let’s start with the basics. When filing your primary federal tax return, you’ll need Form 1040—your main tax form. Next, you’ll also need to collect your income documents. This includes W-2s if you are a salaried or hourly employee and 1099s for all other income sources (self-employment, investments, unemployment, etc.).

Your home-related documents for deductions and credits start with Form 1098.

“The 1098 form reports how much interest, property taxes, points, and mortgage insurance you paid throughout the tax year for each property financed,” explains Katrina Martin, a veteran tax and accounting professional with WOW Tax & Advisory Services. “Your mortgage lender will send you the form by mail, or you can download it online from your lender’s account portal each year.”

This is perhaps the most important document in terms of your taxes as a homeowner because “if you paid a lot in interest and property taxes, then this can help you keep more of your money,” Martin adds.

For homeowners who bought property in the last year, you’ll also want to make sure you have your closing documents at hand.

“If you purchased a home during the tax year, you'll want to keep your settlement statement (HUD-1) from your closing to deduct any prepaid expenses that qualify for tax savings,” says Martin, adding that you’ll also receive this document if you refinanced in the last year as well.

SALT changes and the paperwork you’ll need

The tax bill known as the One, Big, Beautiful Bill, signed in July 2025, made permanent or expanded many previous tax cuts that benefited some homeowners.

Significantly, it temporarily raised the cap on the SALT deduction, which could make itemizing deductions more beneficial—especially for residents of high-tax states.

“The new state and local tax (SALT) changes will primarily impact individuals in high-tax states like New York, New Jersey, and California, as home prices and property taxes are higher in these locations,” explains Martin.

“The new SALT tax change allows homeowners to deduct up to $40,000 in state and local taxes—up from $10,000 in prior years. Essentially, if your mortgage interest and property taxes are greater than $10,000 per year, you can now deduct up to $40,000 in 2025, making this a nice savings for taxpayers.”

This change is effective until 2029 and will increase by 1% annually until it sunsets. To claim this deduction, you must itemize your taxes—you can’t take the SALT deduction if you claim the standard deduction.

Should homeowners itemize their taxes or take the standard deduction?

When it comes time to dive into your taxes, there can be benefits to itemized deductions for homeowners—but only if your finances support it.

“The standard deduction rates have increased so much over the years that it is difficult for most people to exceed them and itemize. It is still important to run the numbers to see if you can go above the standard deduction amount for your filing status,” says Martin.

To determine whether to itemize, homeowners should calculate whether their total allowable deductions—mainly mortgage interest, state and local taxes (SALT), and charitable contributions—are greater than the standard deduction for their specific filing status. If these itemized expenses fall below the standard deduction, taking the standard deduction will be the simpler and more advantageous option.

“So, gather your documents and do some calculations—and make sure you share all of this information with your tax adviser,” says Martin.