Tax deductions for homeowners range from mortgage interest to discount points to property taxes. Homeowners can deduct mortgage interest and property tax on second homes as well. Tax deductions are helpful for reducing taxable income, but tax credits are even better because they provide greater savings. Some first time home buyers will qualify for a mortgage interest credit, through the Mortgage Credit Certificate program. Homeowners who made energy efficient upgrades like adding solar panels,can claim the residential energy efficient property credit. Not all homeowners expenses are deductible, unfortunately. Homeowners insurance is not deductible, for example. Maximizing your tax benefits is important, but there's no room for error. Consult a tax professional if you have any questions.