Turbotax didn't ask about a new home purchase, so ...
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laineylefeve1
New Member

Turbotax didn't ask about a new home purchase, so I didn't get a deduction for buying a home. How do I add that?

 
4 Replies
Mike9241
Level 6

Turbotax didn't ask about a new home purchase, so I didn't get a deduction for buying a home. How do I add that?

there is no federal credit for a new home purchase. maybe your state has one. 

DoninGA
Level 15

Turbotax didn't ask about a new home purchase, so I didn't get a deduction for buying a home. How do I add that?

There are no deductions or credits for the purchase of a home on federal tax return.  The purchase of a home is not entered on a tax return.

xmasbaby0
Level 15

Turbotax didn't ask about a new home purchase, so I didn't get a deduction for buying a home. How do I add that?

If you already e-filed you cannot add anything.   But...if you have not e-filed:

 

You do not report or enter that you purchased a home.  You can enter mortgage interest, loan origination points, private mortgage insurance or property tax paid in 2020 for the home.

 

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, private mortgage insurance (PMI) and loan origination fees (“points”) that you paid in 2020.  You should have a 1098 from your mortgage lender that shows this information.  Lenders send these in January/early February.

 

 

 

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.

 

 

 

HOMEOWNERSHIP DEDUCTIONS

 

It is 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, especially if you purchased the house late in the year.  

Standard Deduction
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. 

 

 

 

2020 Standard Deduction Amounts

 

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

 

**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.**
Critter-3
Level 15

Turbotax didn't ask about a new home purchase, so I didn't get a deduction for buying a home. How do I add that?

Itemizing deductions in the year you buy your first home will not usually be possible ... however you can enter the mortgage interest and RE taxes paid in the Deductions & Credits tab under the Home section.  

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