In general, on your US return, you can not claim rental expenses; however, if you pay property taxes as part of your lease agreement, these taxes are deductible on your federal tax. You can also deduct the cost of damage of your property because of fire, theft or other accidents. Some states also offer renters credits or deductions. Some states offer a renters tax credit, which usually represents an amount that the state has determined to be the portion of the rent that the landlord collects in order to pay property taxes. New Jersey allows renters to claim a credit based on the portion of their rent used to pay property taxes, within certain limitations. Renters in Maryland may receive up to $750 in tax credits depending on income and tax filing status.but, you can deduct the amount of rent represented by the portion of your home /apartment used for business, as well as a prorated portion of utility payments like water, power, heating and gas. |