Filing separately after purchasing condo together?

[jgonzaless121]

Hi all!

My partner and I recently purchased our first home during the middle of this year. After that and a few other life changes, I was wondering how this may affect how we file our taxes on this platform.

We previously rented a space with family, always filed taxes separately, and had all benefit coverage through our employers.

Though I'm not sure what will change now that we both have our medical coverage through GetCoveredNJ (dental, vision, etc are still through our jobs) and have purchased a condo together (not renting, though I also wasn't sure if the type of home we have has any impact either). We also are still not married.

Any advice, clarity, or direction would be extremely appreciated! Thank you for your time.

[xmasbaby0]

You purchased a condo in 2024?       If you are not legally married, then nothing changes about how you file your 2024 tax returns.   You each file as Single unless one of you has a qualified dependent that would allow you to file as Head of Household.  Owning a condo together does not change how you file your tax return.   Homeownership may not have any effect at all on either of you, unless you have enough itemized deductions to exceed your standard deduction.   If your mortgage interest, property taxes paid, medical expenses that exceed the threshold, charity donations etc. exceed your standard deduction, then enter the itemized amounts.    You can enter the amount of the home mortgage interest and property tax that you each paid.

CO-OWNING A HOME

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/deduct-mortgage-i...

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2024.  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.

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. 

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $14,600    (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1500)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1850)

[Hal_Al]

Q. Who claims the  mortgage interest and real estate tax deductions?

A. You pretty much have a choice. One can claim it all or you can split it. It's usually best if only one claims it, allowing the other to use the standard deduction.

You have to meet the rules, which are:

1. You are legally obligated to pay it
2. You actually pay it. Paying from a joint account where you made sufficient deposits to cover the payments will usually meet this standard. However, paying from your own account would be a stronger audit defense.