Can renters write off rental insurance on taxes like home owners do with home insurance?

Wait, so homeowners can't deduct their regular home insurance either? I thought that was included in mortgage interest deductions or something. What exactly CAN homeowners deduct then? And is there anything at all that renters can deduct housing-wise?

Homeowners can deduct mortgage interest and property taxes if they itemize deductions instead of taking the standard deduction. The standard deduction is quite high now ($13,850 for single filers in 2023), so many homeowners don't even itemize anymore unless their deductible expenses exceed that amount. Regarding housing deductions for renters, unfortunately there aren't many direct federal tax benefits. However, some states offer renter's credits or rebates. For example, California, Indiana, and Minnesota have programs where renters can receive a tax credit for a portion of their rent paid. Check your state's tax rules to see if you might qualify for any local benefits.

Does it really work for renters specifically? I've tried other tax software and they seem so focused on homeowner benefits that I feel like I'm missing out. How much of my info do I need to upload for it to give accurate advice?

I'm always skeptical of these tax services because they seem to promise a lot but then just give generic advice you could find on Google. Does it actually look at YOUR specific situation or just general guidelines? And how does it compare to something like TurboTax or H&R Block?

It definitely works for renters - that's my situation too! It analyzes your specific documents rather than just giving generic advice, which is why I found it more helpful than general tax websites. It looks at your W-2s, 1099s, receipts, and any other documents you upload to give personalized recommendations for your exact situation. For your second question, it's different from TurboTax because it focuses specifically on finding deductions and credits you might miss. It's more like having a tax professional review your documents before you file. I still use regular tax software to actually file, but taxr.ai helps me identify everything I should be including first.

How does this even work? The IRS phone system is notoriously impossible to navigate. Are you saying this service somehow jumps the queue or something? That sounds too good to be true.

This sounds like total BS to me. I've been told by multiple tax professionals that there's no way to "skip the line" with the IRS. You either wait on hold for hours or you don't get through. I seriously doubt any service can magically get you to an agent faster than anyone else.

It doesn't jump the queue - it automates the calling process. Basically, it calls the IRS for you and navigates through all the menu options and wait times. Once it reaches a human agent, it calls you and connects you directly. It's like having someone else wait on hold for you instead of having to do it yourself. The reason it can be faster than doing it yourself is that it redials automatically if disconnected and calls during optimal times when wait times are typically shorter. It's not magic - it's just handling the frustrating part of the process so you don't have to sit there listening to hold music for hours.

How strict is the "exclusively for business" part? I have a desk in my bedroom where I do all my freelance work. Would that count or does it need to be a separate room entirely?

The "exclusively for business" requirement is pretty strict. A desk in your bedroom typically wouldn't qualify because the room serves a dual purpose (sleeping and working). The IRS wants to see a space that's solely dedicated to your business activities. It doesn't necessarily need to be an entire separate room, though. You could partition off a section of a larger room if it's clearly defined and used only for business. Some people use room dividers or bookshelves to create a distinct workspace. The key is that you can clearly demonstrate that this specific area is used only for business and nothing else.

Which states offer these kinds of renter benefits? I'm in Pennsylvania and never heard of anything like this.

I've heard about these state renter credits too, but every time I try to figure out if I qualify, I get lost in all the paperwork and requirements. Did you need to get any special forms from your landlord to claim it?

@KhalilStar Pennsylvania doesn't have a general renter's credit program like Minnesota, but you might still have some options. Check if your local municipality offers any property tax relief programs for renters - some cities and counties have their own programs even when the state doesn't. @Amelia Dietrich For Minnesota s'program, you typically don t'need special forms from your landlord - just your lease agreement and rent receipts. The state assumes a portion of your rent goes toward property taxes. But requirements vary by state, so definitely check your specific state s'rules if they have a program. Other states with renter benefits include California has (a renter s'credit ,)Indiana renter (s'deduction ,)and some others. Worth doing a quick search for [your "state] renter tax credit to" see what s'available!

This is such good advice! I'm new to doing taxes as a renter and was feeling pretty discouraged after learning about all the homeowner benefits I'm missing out on. You're right that it's better to focus on what I CAN deduct rather than what I can't. I actually moved twice last year for work and had no idea that could be deductible. Do you know if there are specific distance requirements for moving expenses to qualify? And for donations, do I need receipts for everything or just items over a certain value? Thanks for the perspective shift - it's easy to get caught up in what feels unfair about the tax system instead of making sure I'm taking advantage of what's actually available to me!