Don't pay more taxes than necessary.  Home ownership has tax benefits.  You should know the score on each home tax deduction and credit.  Here are a few:

Deducting the wrong year for property taxes

You take a tax deduction for property taxes in the year you actually paid them. Some taxing authorities work a year behind-that is, you're not billed for 2010 property taxes until 2011. Others (like Texas) send the bill in October, but it's not due until January 31 of the following year.  But that's irrelevant to the feds.  Enter on your federal forms whatever amount you actually paid in 2010 (or your current tax year), no matter what the date is on your tax bill.

Confusing escrow amount for actual taxes paid

If your lender escrows funds to pay your property taxes, don't just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. It may also include your home owner insurance.  Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don't just add up 12 months of escrow property tax payments.

Seek the assistance of a qualified tax preparer - they will be able to help you take advantage of your potential savings and maximize your tax savings.