turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

danfoc28
New Member

Im not getting the take break for buying a house or my property taxes

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MichaelDC
New Member

Im not getting the take break for buying a house or my property taxes

Buying a house and property tax does qualify. However, there can be any number of reasons it doesn't show up on your Schedule A (Itemized Deductions).

One common reason is that your total itemized deductions (Property Tax, Mortgage Interest, Charitable Donations and State Income Tax) don't add up to more than the standard deduction for your filing status. More info about your situation would be needed to know for sure.

Especially for first-time homebuyers, timing is everything. If you buy a house towards the end of the year, the home owner deductions (Mortgage Interest and Property Tax) won't add up to anything significant or helpful in the few months that you owned it. In fact, if you bought in November, your first mortgage payment is sometimes not until January. That's no help.

However, if you bought in January or February, you have 11 or 12 months for that interest to accumulate and help you in your taxes.

Included below is some info on closing costs from your HUD statement that may help.

Here are the standard deduction amounts for 2016. (Your itemized deductions need to exceed this number in order for them to help you and trigger a Schedule A on your return.)

Filing Status Standard Deduction

Single $6,300   
Married Filing Jointly $12,600
Married Filing Separately $6,300
Head of Household $9,300
Qualifying Widow(er) $12,600

You can deduct any taxes paid or mortgage interest as part of your closing costs and reported on your HUD-1.

The following lines may vary as the official HUD form changes over time: http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf

  • 210 - City/town taxes - Deductible as itemized deduction on Form 1040 schedule A
  • 211 - County taxes - Deductible as itemized deduction on Form 1040 schedule A
  • 801 - Loan Origination Fee - Deductible as itemized deduction ('points') on Form 1040 schedule A
  • 802 - Loan Discount - Deductible as itemized deduction ('points') on Form 1040 schedule A
  • 901 - Daily interest charges - Deductible as itemized deduction - this interest typically included in year end interest statement (Form 1098)
  • 1004 - Property taxes - Deductible as itemized deduction when paid from escrow; can be added to property taxes on your 1098 to indicate total amount of property tax paid for the year.


message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question