First Time Home Buyer & Tax Return
I bought my very first house in September '13. I'm filing my taxes this month through H&R Block online and I didn't notice my home owner deductions. Just the standard amount I usually get prior to owning a house.
I went to H&R Block office and an agent stated that it was due to the time of my home purchase. Is that true? Will I start gaining home owner deduction next year?
Thanks in advance,
Home Newbie in Texas
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Make sure that you have entered all the possible deductions into the software. This include the interest you paid on the mortgage to the bank, the taxes you paid to the state or local government, and any income taxes. If it doesn't exceed the amount for the standard deduction, the software should tell you you why it selected the standard deduction for you.
Because Texas doesn't have income taxes you need to make sure you include the sales tax deduction. If you moved during the year, it will take that into account.
You also have to look on the settlement papers for information on the property tax you paid at settlement, and points you paid at settlement. Don't forget that you can deduct mortgage insurance. The IRS discusses many of those items in pub 936. Just be careful that you don't double count these items.
Also don't forget to include any charitable contributions you made before the end of the year. Include items you donated while packing for your move to the new house. look over all the parts of schedule A to see if any other items apply to your situation.
There are no deductions for owning a home.
What is deductible is the mortgage interest you're paying and the property tax that you paid for that year, but if your mortgage interest (together with the State income tax) is less than the standard deduction - then you don't get any benefit. That is, it seems, what has happened to you.
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