So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars?

iamdom97 — Tue, 14 Jan 2020 06:51:24 GMT

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars?

xmasbaby0 — Tue, 14 Jan 2020 16:14:11 GMT

You cannot enter itemized deductions using the Free Edition. You need at least Deluxe for that.

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher. Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.

Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Home Ownership

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.

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

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, private mortgage insurance (PMI) and loan origination fees (“points”) that you paid in 2019. You should have a 1098 from your mortgage lender that shows this information. Lenders send these in January/early February.

As for buying a car--what are you trying to enter? Sales tax?

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2019 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

Sales tax is an itemized deduction. If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher. The TT process will suggest one or the other as you prepare your return.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars?

daa — Mon, 13 Jul 2020 08:02:04 GMT

how/where can closing costs that are deductible as itemized, (items explained in reply above), be entered from closing disclosure or hud correctly if not listed on 1098? i read other Q&As that seem to contradict each other..? thank you in advance!

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in ta...

VictoriaD75 — Mon, 13 Jul 2020 13:21:46 GMT

They can be manually entered as though you have a 1098. Only mortgage interest, points paid, and property taxes are deductible from the purchase of the home. Some additional expenses may be added to the basis of the property to determine gain in the year of the sale. Enter the deductible items in the Deductions & Credits menu under Your Home.

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in ta...

daa — Tue, 14 Jul 2020 20:56:17 GMT

thank you! when entering as separate 1098, should i check the box that says interest amount is different than whats on my 1098?

topic So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars? in Deductions & credits

So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars?

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars?

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in taxes for that? Also I though this was free why they making me pay 40 dollars?

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in ta...

Re: So I bought my first home this year in august and my first vehicle. Do I get money back in ta...