Mercury Insurance Offers Homeowners Recommendations on Tax Deductions That Could Save You Thousands

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Mercury Insurance (MCY) has released tax preparation guidance for homeowners, highlighting key deductions that could result in significant savings. The company emphasizes the importance of thorough documentation, especially with the rise in remote work arrangements.

The advisory outlines several important deductions including:

• Mortgage interest deductions up to $750,000 for single filers or married couples filing jointly
• Property tax deductions up to $10,000 for joint filers or $5,000 for single/separate filers
• Home office expenses for dedicated workspace
• Energy-efficient improvement credits available through 2032
• Home equity loan interest when used for home improvements

Mercury's Senior Product Manager, Adam Bakonis, stresses the significance of reviewing these deductions with tax professionals to maximize potential returns.

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Make a Checklist to Review with Your Tax Preparer

LOS ANGELES, April 3, 2025 /PRNewswire/ -- One of the most difficult parts of preparing your taxes is gathering all of the paperwork. If you own your home, that task is multiplied and even more important; one overlooked deduction can cost you thousands. With April 15 just around the corner, Mercury Insurance is providing a checklist so you are prepared when you sit down to do taxes or review with your CPA.

Most of us are accustomed to deducting our mortgage insurance, but with more people now working from home, it becomes even more important to make sure you are including all aspects related to that space. That might include everything from investment in energy saving upgrades like energy efficient windows, to your cell phone and computer equipment. Missing these items can cost you a great deal of money in the long run.

"Mercury recommends that all homeowners set aside time to review homeowners deductions with your CPA or accountant," said Adam Bakonis, Sr. Product Manager for Mercury Insurance. "Missed deductions can wind up costing you thousands of dollars."

Here are some of the most common deductions for homeowners:

Mortgage interest – The interest you pay on your mortgage is deductible up to $750,000 as a single filer or as a married couple filing jointly. The only exception is if the mortgage was not to buy, build or improve your home.

Property taxes – Your property taxes are deductible up to $10,000 as a married couple filing jointly or $5,000 if you are single or filing separately.

Home office expenses – With working from home more common than ever, you may be able to deduct some of the expenses necessary to operate an office space. Check with your tax professional to validate requirements, including determining how much time you need to spend working from your dedicated home workspace(s).

Energy credits – For those making qualified energy-efficient improvements to your home after January 1, 2023, you may be eligible for IRS Energy Credits. You can claim the credit for improvements made through 2032.

HOA fees – HOA fees are generally not deductible when it comes to your taxes, but if you own the property for investment purposes and rent to a tenant, you may be able to deduct certain expenses.

Home equity loan interest – It is important to remember that home equity funds can only be used as a deduction if the funds were used to improve your home, such as a kitchen or bath remodel.

There are potentially thousands of dollars in deductions available to homeowners. It is important to explore all of your options and, if necessary, consult with your tax advisor to make sure you are receiving your maximum refund and not leaving any of your hard-earned money on the table.

About Mercury Insurance

Headquartered in Los Angeles, Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.  

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through nearly 4,100 employees and a network of more than 6,500 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on Twitter or Facebook. 

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SOURCE Mercury Insurance

FAQ

What are the maximum mortgage interest deductions allowed for Mercury Insurance homeowners in 2025?

Homeowners can deduct mortgage interest up to $750,000 as a single filer or married couple filing jointly, provided the mortgage was used to buy, build, or improve the home.

How much can homeowners deduct in property taxes according to Mercury Insurance's 2025 guidance?

Property taxes are deductible up to $10,000 for married couples filing jointly, or $5,000 for single filers or those filing separately.

What energy tax credits are available for Mercury Insurance homeowners through 2032?

Homeowners can claim IRS Energy Credits for qualified energy-efficient improvements made to their homes after January 1, 2023, through 2032.

Are HOA fees tax-deductible according to Mercury Insurance's 2025 tax guidance?

HOA fees are generally not tax-deductible for primary residences, but may be deductible if the property is used for investment purposes and rented to tenants.