Should TT Delue or TT primer be the simple way to file 2023 TT with a purchased of a new home in 2023?

[tonyC943]

is there a significant difference?

[DoninGA]

If you are referring to the 2023 TurboTax desktop CD/Download editions that are installed on a personal computer, either edition can be used.  All the desktop editions include the same forms, schedules and worksheets.  You only get more help and guidance using the higher editions.

So the Deluxe edition can be used to report a home sale.  You may be asked to upgrade to the Premier edition but that is only a recommendation, Not a requirement.

[DoninGA]

Additionally, you do not report the purchase of new personal residence on a tax return.  Only when the home is sold there may be a need to report the sale, depending on certain variables.

You can report the mortgage interest, property taxes paid and mortgage points paid (if any) for the home as itemized deductions on Schedule A.

[xmasbaby0]

The purchase of a home is not entered on a tax return.   If you are itemizing deductions, there are some home ownership deductions to use--mortgage interest, property tax and loan origination points.  

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. 

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $12,850  (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

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.

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2023.  You should have a 1098 from your mortgage lender that shows this information.  Lenders send these in January/early February.

[rjs]

If you are asking about TurboTax Online, either Deluxe or Premium will allow you to enter the deductions that are applicable to your home, such as mortgage interest and real estate tax. TurboTax Online for 2023 should be available in a couple of weeks.