I was told buying a home in 2018 would apply a huge tax credit and I should get back whatever closing costs I paid in by a tax advisor, but my return says I OWE money. Does buying a home not give a ta

[DoninGA · Accepted solution]

The purchase of a personal residence is not reported on a federal tax return.  You can deduct as itemized deductions any mortgage interest paid, property taxes paid and points paid on the mortgage loan.  However, your total itemized deduction on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

Standard deductions for 2018 

• Single - $12,000 add $1,600 if age 65 or older
• Married Filing Separately - $12,000 add $1,300 if age 65 or older
• Married Filing Jointly - $24,000 add $1,300 for each spouse age 65 or older
• Head of Household - $18,000 add $1,600 if age 65 or older