cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

I bought a house this year, will it affect my taxes and what do I need to do?

 
2 Replies
Highlighted
Level 15

I bought a house this year, will it affect my taxes and what do I need to do?

If you itemize, expenses such as real estate tax and mortgage interest paid are deductible itemized deductions. 

Level 20

I bought a house this year, will it affect my taxes and what do I need to do?

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, and loan origination fees (“points”) that you paid in 2019.  You should have a 1098 from your mortgage lender that shows this information.

 

It is going to be 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,  And there is a $10,000 cap on state and local taxes including your property taxes.

 

2019 Standard Deduction Amounts

 

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

Married Filing Separately      $12,200   (+ $1650 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)

 

https://ttlc.intuit.com/questions/2900844-where-do-i-enter-my-1098-mortgage-interest-statement