New House

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My wife and I closed on our first home in July. We’re looking to know what deductions we may be entitled to. What paperwork will be needed and what’s the best filing status for the maximum refund

evelynmAnswer

Employee Tax Expert

Because you closed in July, you’ll have five to six months of tax-deductible expenses—such as mortgage interest, property taxes, and likely qualified mortgage points—to account for on your 2026 tax return. To maximize your refund, Married Filing Jointly is almost always the best option, and you will need compare your total itemized expenses against the $32,200 standard deduction once your year-end documents arrive.

To prepare for tax season, make sure to keep your Escrow Closing Settlement Statement handy and watch for Form 1098 from your lender in late January 2027.

Here is a great link with further details: What deductions can homeowners take?

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".

evelynm

Answer

Employee Tax Expert

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".

KennyinbmoreAuthor

Level 2

Thanks Evelyn. That’s really good information. 🙂

xmasbaby0

Level 15

There is not a first time home buyers credit on a Federal return. That ended in 2010. If your state has such as credit, you will be able to enter it when you prepare your state return.

Buying a home is not a guarantee of a big refund. Your deductions for homeownership combined with your other deductions (if any) must exceed your standard deduction to change your tax due or refund. If you purchased your home late in the year, you do not even have a full year of home ownership deductions.

Your closing costs on your new home are not deductible except for prepaid interest, prepaid property tax or loan origination fees. There are no deductions for appraisal, inspections, title searches, settlement fees. etc.

Your down payment is not deductible.

Your homeowners insurance for fire, hazard, flood, etc. is not deductible for your own home.

Home improvements, repairs, maintenance, etc. for your own home are not deductible. (With possible exceptions for certain energy credits) (BUT——do make sure you keep careful written records/invoices, etc. of any improvements you make to the home for someday when you sell it.)

Homeowners Association (HOA) fees for your own home are not deductible.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**