We are filing separately,Do both of us need to enter the points paid on the 1098

[xmasbaby0]

Are you in a community property state? Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

[sueners]

tx

[xmasbaby0]

Separate returns are tricky to prepare when you are in a community property state.  Why are you filing MFS?  It is usually the worst way to file.

[sueners]

We aren't married,but bought a home together

[sueners]

Would it be better for the one who makes more than the other to claim 100% of the new home?

[xmasbaby0]

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, 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. 

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older)

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. 

[xmasbaby0]

Oh... when you said you were filing separately I thought you meant you were filing married filing separately.  You are just each filing your own return and want to split the home ownership deductions.  You can each claim the amount that you paid-- the amounts you each claim cannot exceed 100% of the actual amount paid.  Same with the mortgage interest and property taxes.

[xmasbaby0]

Oh... when you said you were filing separately I thought you meant you were filing married filing separately.  You are just each filing your own return and want to split the home ownership deductions.  You can each claim the amount that you paid-- the amounts you each claim cannot exceed 100% of the actual amount paid.  Same with the mortgage interest and property taxes.