Hi Vera,
Congratulations on your home purchase!!
Let me make an assumption that you are filing as single. When filing taxes you can either take the standard deduction for single OR do itemized deductions. Your best tax outcome will be which ever deduction is higher. In TY 2022 the standard deduction for single is $12,950. So, in order to benefit taxwise from the purchase of a home, your itemized deductions need to be higher than $12,950.
Generally speaking, in the year you purchase your home you will not have a large deduction for mortgage interest or real estate taxes unless you started making mortgage payments in January.
When purchasing a home there are a couple of deductions that may help you on your tax return. Those are: mortgage interest, real estate taxes and possibly points if you paid those at closing. Other itemized deductions include state and local taxes, charitable contributions, plus a couple more.
Without knowing your exact tax situation (income and mortgage amounts) I cannot say which deduction will be better. Since the standard deduction has risen, many people no longer have enough itemized deductions to use.
I would not recommend any changes to your W4 at work for now. I would recommend you wait and see if you are able to itemize. I know many people think that buying a home will provide them with tax savings. That sometimes is true. It's still a great investment to be a home owner.
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