Can I file an amended return as a first time home buyer? Does buying a home give me any tax break?

[DianeW · Accepted solution]

As a first time home buyer you do have expenses that can be used on the tax return if you can itemize deductions.

You can deduct the mortgage interest and property tax paid in 2016 if you are able to itemized deductions.  Be sure to include any points as well as mortgage insurance premiums (also known as MIP or PMI*). This information will be on the settlement statement, usually known as the HUD1, or on the year end statement from the lender.  If property taxes were paid by you and not the lender you would determine that amount paid from your funds (not the escrow).

• Note:  *Deducted over 84 months beginning with the first month of payment.  VA funding fee or Rural Housing Service funding fee is fully deductible in the year of purchase and is not considered PMI.

• If the standard deduction is used because it is higher than you would not use these expenses. If you didn't have a full year of expenses then they would likely work for you next year.

You can see if the itemized deductions might be better for you and if so you can amend your tax return.  The standard deduction for married taxpayers is $12,600.  The chart is attached for other filing statuses.