Paying your income taxes each year leave your wallet a bit thin? There may be money hiding in your home that lessens your tax burden. Here are four places to look:

1. Home-Office Deduction

If you work from home, you could qualify for a home-office deduction. Taking the deduction can be a bit complicated; so many people who qualify don’t claim the exemption. An estimated 26 million Americans have home offices, but only 3.4 million claim them on their tax return.

Perhaps that’s why the Internal Revenue Service attempted to simplify the process in 2013.

The write-off takes into account depreciation, utilities, insurance, the amount of square footage dedicated for office space, whether you host clients at your house and other factors.

Because the parameters involved in filing a home-office exemption are rather complicated, it’s best to keep all business-related receipts, records of client meetings and other pertinent information to make things easier when you prepare your return.

2. Casualty Loss

Damage to your home from an act of God or a theft or burglary may qualify you for an income tax exemption. To qualify for the write-off, the causality loss must meet the “sudden event test.” That means it must be sudden, unpredictable, have involved some natural force and occur in a single instance.

To claim thefts and burglaries, you must be able to prove that a wrong doing has actually occurred. It can’t just be a case of a lost item that you suspect was stolen. Proof can come in the form of witness statements, police reports or newspaper accounts.

3. Energy Efficiency Upgrades And Repairs

Upgrading your home with energy efficient improvements can qualify you for a tax deduction. New roofs, insulation, windows, doors and a number of additional items qualify for the deduction. The deductions lets homeowners claim 10 percent of the total bill for energy efficient materials. The maximum credit is $500.

4. Real Estate Taxes And Newly Purchased Homes

New home owners should look at their settlement statement a bit closer. If the previous owner prepaid property taxes that cover any of the time you owned the home, you can include the prepaid taxes in your property tax deduction.

Don’t pay more than you have to when you file your taxes each April. Consider these commonly overlooked deductions that can lessen the amount you have to pay.

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Last week’s economic news included readings on February construction spending and multiple reports on employment data.

Private sector employment was higher in March, but The Bureau of Labor Statistics reported that Non-Farm Payrolls for March fell short of expectations. According to Freddie Mac, mortgage rates ticked upward.

Employment And Unemployment News

ADP’s payrolls report for March was higher than February’s reading, with 191,000 new private sector jobs added. In February, 178,000 jobs were added. February’s reading originally showed 138, 000 new jobs added.

While analysts were confident that private-sector employment was showing signs of stability, the U.S. Bureau of Labor Statistics swamped excess confidence in labor markets Friday with its March reading for Non-Farm Payrolls.

192,000 jobs were added in March against predictions of 200,000 jobs added and February’s reading of 197,000 jobs added.

The news was not all bad as job gains for January and February were revised upward. January’s job gains were revised from 129,000 to 144,000 and February’s reading was revised from 175,000 to 197,000 jobs added. The revised readings represent a total of 37,000 more jobs added.

As data impacted by severe winter weather “shakes out,” it would not be surprising to see a revision to March’s new jobless claims reading as well.

Unemployment Rate Holds Steady, Workforce Numbers Higher

While readings on employment have been up and down in recent months, the national unemployment rate has held relatively steady, with last week’s reading at 6.70 percent. 503,000 workers joined the workforce this increased the labor participation rate for March from 63 percent to 63.20 percent.

Mortgage rates were incrementally higher last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage increased by one basis point to 4.41 percent; discount points moved from 0.60 percent to 0.70 percent.

The average rate for a 15-year fixed rate mortgage rose by five basis points to 3.47 percent with discount points unchanged at 0.60 percent. 5/1 adjustable rate mortgages had an average rate of 3.12 percent, which was two basis points higher than the previous week. Discount points for 5/1 adjustable rate mortgages were unchanged at 0.50 percent.

This Week’s Economic News Highlights

Job openings for February, FOMC minutes and the University of Michigan consumer sentiment index for March are set for release this week. As usual, Freddie Mac will post results of its latest Primary Mortgage Market Survey and weekly unemployment claims will also be reported.

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Harsh winter weather conditions contributed to home prices falling in January. The S&P Case-Shiller 20-City composite index reported that home prices dropped by 0.10 percent in January, but after seasonal adjustments, home prices increased by 0.80 percent in January as compared to December. 12 of 20 cities posted declines in home prices in January.

There’s no cause for alarm, as year-over-year home prices increased by 13.20 percent as compared to year-over –year readings of 13.40 percent in December and 13.70 percent in November. David Blitzer, chair of the S&P Dow Jones index committee, said “The housing market is showing signs of moving forward with more normal price increases.” Home prices remain about 20 percent below a peak reached in 2006.

Housing Markets Face Challenges

Analysts expect home prices to grow at a slower pace in 2014. Factors impacting home prices include higher mortgage rates that make homes less affordable, new mortgage rules that may affect some homebuyers’ ability to qualify for a mortgage.

A shortage of available homes overshadowed housing market growth in 2013; there just weren’t enough homes available to meet demand in some areas.  The Federal Reserve’s Federal Open Market Committee (FOMC) noted in its statement last week that it was difficult to determine the exact scope of winter weather on recent economic reports.

Regional Markets Show Discrepancies In Recovery

The S & P Case-Shiller 10 and 20-city home price index reports shed light on a “patchwork quilt” housing recovery. While some areas have seen a higher than average rate of year-over-year home price growth, other areas are underperforming.

Here is a sampling of Case-Shiller’s January data throughout the U.S:

Las Vegas, Nevada                             +24.90 percent

San Francisco, California                     +23.10 percent

Chicago, Illinois                                 +10.80 percent

Washington, D.C.                              +9.20 percent

New York, New York                           +6.70 percent

Cleveland, Ohio                                 + 4.00 percent

 The S & P Case Shiller 10 and 20 city home price indices posted year-over-year gains of 13.50 and 13.20 percent respectively.

 FHFA Data Shows Similar Trend

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, released its House Price Index (HPI) for January with similar results for homes mortgaged or backed by Fannie Mae and Freddie Mac. The House Price Index indicated that home prices rose by a seasonally-adjusted rate of 0.50 percent from December to January. According to the FHFA HPI, home prices increased by 7.40 percent year-over-year.

January’s HPI was 8.00 percent below the index’s April 2007 high.

The FHFA HPI data is seasonally adjusted and is based on home purchases only.

FHFA month-to-month data for the nine census bureau districts reflects the differences in housing markets throughout the U.S.

FHFA month-to –month home price growth December 2013 to January 2014:

Middle Atlantic division:    + 1.30 percent

New England                        + 1.00 percent

West North Central             + 1.00 percent

Pacific                                    + 0.80 percent

East South Central              + 0.70 percent

Mountain                              + 0.50 percent

South Atlantic                      + 0.30 percent

East North Central              + 0.10 percent

West South Central             –  0.30 percent

Along with warm weather’s arrival is the potential for regional housing markets sidelined over the winter to recover.

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Harsh winter weather conditions contributed to home prices falling in January. The S&P Case-Shiller 20-City composite index reported that home prices dropped by 0.10 percent in January, but after seasonal adjustments, home prices increased by 0.80 percent in January as compared to December. 12 of 20 cities posted declines in home prices in January.

There’s no cause for alarm, as year-over-year home prices increased by 13.20 percent as compared to year-over –year readings of 13.40 percent in December and 13.70 percent in November. David Blitzer, chair of the S&P Dow Jones index committee, said “The housing market is showing signs of moving forward with more normal price increases.” Home prices remain about 20 percent below a peak reached in 2006.

Housing Markets Face Challenges

Analysts expect home prices to grow at a slower pace in 2014. Factors impacting home prices include higher mortgage rates that make homes less affordable, new mortgage rules that may affect some homebuyers’ ability to qualify for a mortgage.

A shortage of available homes overshadowed housing market growth in 2013; there just weren’t enough homes available to meet demand in some areas.  The Federal Reserve’s Federal Open Market Committee (FOMC) noted in its statement last week that it was difficult to determine the exact scope of winter weather on recent economic reports.

Regional Markets Show Discrepancies In Recovery

The S & P Case-Shiller 10 and 20-city home price index reports shed light on a “patchwork quilt” housing recovery. While some areas have seen a higher than average rate of year-over-year home price growth, other areas are underperforming.

Here is a sampling of Case-Shiller’s January data throughout the U.S:

Las Vegas, Nevada                             +24.90 percent

San Francisco, California                     +23.10 percent

Chicago, Illinois                                 +10.80 percent

Washington, D.C.                              +9.20 percent

New York, New York                           +6.70 percent

Cleveland, Ohio                                 + 4.00 percent

 The S & P Case Shiller 10 and 20 city home price indices posted year-over-year gains of 13.50 and 13.20 percent respectively.

 FHFA Data Shows Similar Trend

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, released its House Price Index (HPI) for January with similar results for homes mortgaged or backed by Fannie Mae and Freddie Mac. The House Price Index indicated that home prices rose by a seasonally-adjusted rate of 0.50 percent from December to January. According to the FHFA HPI, home prices increased by 7.40 percent year-over-year.

January’s HPI was 8.00 percent below the index’s April 2007 high.

The FHFA HPI data is seasonally adjusted and is based on home purchases only.

FHFA month-to-month data for the nine census bureau districts reflects the differences in housing markets throughout the U.S.

FHFA month-to –month home price growth December 2013 to January 2014:

Middle Atlantic division:    + 1.30 percent

New England                        + 1.00 percent

West North Central             + 1.00 percent

Pacific                                    + 0.80 percent

East South Central              + 0.70 percent

Mountain                              + 0.50 percent

South Atlantic                      + 0.30 percent

East North Central              + 0.10 percent

West South Central             –  0.30 percent

Along with warm weather’s arrival is the potential for regional housing markets sidelined over the winter to recover.

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Spring is almost here, and the National Association of Home Builders Housing Market Index (NAHB HMI) thawed slightly in March.

The current reading of 47 is one point higher than for February, but still indicates pessimism among a majority of builders surveyed. Analysts expected a March reading of 50.

The gauge of builder confidence stayed near its lowest level since May.

March’s NAHB HMI reading remained below the benchmark reading of 50, which indicates that an equal number of builders are positive about housing market conditions as those who are negative.

A reading over 50 indicates that more builders are positive than negative. Last August the NAHB HMI reading reached 58, its highest level since 2005.

Kevin Kelly, NAHB’s chairman said that builder concerns included a lack of land available for development, the lagging effects of severe winter weather and labor shortages.

NAHB HMI Details Show Regional Variances

The NAHB HMI national reading is based on builders’ views of three aspects of housing markets. The March reading of 47 is based on three components. The reading for prospective buyer traffic in new home developments rose by two points to 33.

Builder expectations for present sales of single-family homes rose from 51 to 52. Builder confidence in home sales in coming months fell from a reading of 54 to 53.

Rising mortgage rates and home prices along with inconsistent labor markets influenced builder confidence concerning future home sales.

March Readings For Regional Home Builder Confidence Were Varied:

• Northeast: March’s reading was five points lower at 29.

• Midwest: Builder confidence gained three points in March for a reading of 52.

• West: Builder confidence dropped by five points to a reading of 53.

• South: March’s reading rose by two points to 48.

In related news, the Department of Commerce reported housing starts for February dropped to 907,000 as compared to January’s reading of 909,000 housing starts and expectations of 908,000 housing starts.

Building permits for February rose by 7.70 percent to their second highest level since the recession for a total of 1.02 million permits. The rise in building permits was attributed to construction plans for condominium complexes and rental units.

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