Closing costs and renovations to your own home are not deductible.
Since you purchased the home in 2025, you can enter some itemized deductions next year when you prepare a 2025 tax return. They might or might not have any effect on your tax due or refund.
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 will 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. (With possible exceptions for certain energy credits) (BUT——do make sure you keep careful written records/invoices, etc. of any improvements you make to the home for someday when you sell it.)
Homeowners Association (HOA) fees for your own home are not deductible.
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.
2025 STANDARD DEDUCTION AMOUNTS
SINGLE $15,000 (65 or older/legally blind + $1600)
MARRIED FILING SEPARATELY $15,000 (65 or older/legally blind + $1600)
MARRIED FILING JOINTLY $30,000 (65 or older/legally blind + $1600)
HEAD OF HOUSEHOLD $22,500 (65 or older/legally blind + $1600)
Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2025 You should have a 1098 from your mortgage lender that shows this information. Lenders send these in January/early February or you may be able to import the 1098 from the lender’s website.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
