Your home may seem like just a place to eat and sleep, but it can also help you cut your taxes. The IRS is smart, and they know that if you live in a house, you're spending a lot of time there. That doesn't mean you can't get some tax breaks that go along with being a homeowner. You just have to work with someone who knows how the IRS thinks so they can direct the right deductions and credits your way.
If you own a home in New Jersey, you know that the state's income tax is high—the highest in the nation. (New York is second.) And if you live in New Jersey but work in another state, like Pennsylvania or Delaware, then you have to pay taxes for two states on the same income—unless you qualify for New Jersey's nonresident credit. But filing two separate tax returns can be confusing, and hiring an accountant who understands both states' laws will save you time and possible audits or fines down the road.
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