Mortgage interest credit

[juliachambers200]

First of all it’s not fun to see that you made 40000 grand more and paid 22000 in taxes for doing that. 
I don’t see the difference in tax return with increased income so I’m trying to find tax breaks. How do I know if I was ever eligible for mortgage interest rate if I bought house in May of 2020. Also this year nobody asked me to input the info on the interest I paid on my mortgage and will I ever get any tax brake for having a house, changing roof.whats the point of getting tax and interest form if you never can use it fir your benefit? 😂

Also, it’s asking to enter all receipts. Who on the planet earth saves all receipts and why. Are these receipts are mostly from big purchases and is it worth saving all receipts and who might know of a better way to get sizable return on that? 

[Opus 17]

1. Mortgage interest credit is a low income program.  If you didn't apply when you bought the house (and jump through a lot of bureaucratic hoops to get it), then you have nothing to claim now.

2. Mortgage interest is deductible, it has its own section on the Deductions and Credits page.  Are you jumping around and not going in order?  You can miss things that way.

3. If you itemize deductions, you can deduct state income tax or state and local sales tax but not both.  If you live in a state with a high income tax, there is no point in even testing the sales tax deduction.  If you live in a low tax or no tax state, you may want to use the sales tax deduction.  When claiming a deduction for sales tax, you can either use the standard amount (a standard tax allowance calculated by the IRS based on the sales tax percentage where you live and the IRS estimate of your disposable income), or you can claim the exact amount of sales tax you paid during the year.  To use the exact amount you must have all your receipts that you plan to claim, in case of audit.  I don't know the breakdown on using the standard allowance method or the receipt method, but most of the times, IRS standard allowance methods are fairly generous, and unless you have oversized spending for your reported income, the standard allowance method will probably save as much as the exact method and its a lot easier to claim.  

4. A new roof is never a tax deduction.  Instead, it is an improvement to your property, which increases your adjusted cost basis and may reduce the amount of capital gains tax you must pay when and if you sell.  Keep track of improvements with your other important house papers for as long as you own the house plus 3 years after selling.  

[RobertB4444]

If you received a 1098 for your mortgage then you should enter it into the deductions and credits section of your federal return.  If your interest and taxes are more than your standard deduction then you will receive a tax break.  

In order to take any deduction on your tax return you are expected to have a piece of paper to back it up.  I'm not sure which section of the return is asking for you to enter receipt values.  But maintaining them is a requirement in order to take the deductions that come with them.

In order to reduce your tax bill you should look in to additional retirement account options.  You might want to sit down with an investment counselor or financial advisor.

@juliachambers200 

[xmasbaby0]

You cannot amend any farther back than 2021 to get a better refund.   It is not clear whether entering your mortgage interest, etc. would have made a difference for your past returns.  We cannot see your information.

For 2024----

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and mortgage insurance 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 or you may be able to import the 1098 from the lender’s website.

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. 

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

"all your receipts?"    Sounds like you were trying to enter information for sales tax.  You have a couple of ways to enter sales tax.  You can choose to use  "Easy Guide" or "enter all my receipts"   If you do not want to enter all your receipts then use Easy Guide---which will use a formula based on your income and the sales tax rate in your  locality.   Even if you use Easy Guide you can still enter major purchases like a car, boat or RV if you made such purchases.