Tax help needed for first time homeowner.?
We've been in our first house since Jan. I think that this year I should iteamize my taxes. I have always taken the standard deductions...which are not bad because I've got 3 kids(5 deductions total). 1) If my mortgage is approx $1,100/mo. and most of that going to interest...how much better off would I be to itemize? 2) What other things can I claim as deductions (to increase my refund)?
Thanks in advance for your help...Rob
- feanorLv 71 decade agoFavorite Answer
You probably should itemize...You still get your kids exemptions since they are exemptions and not part of standard deductions.
You'll also get to deduct all the other various taxes...Property and (state income OR sales tax). The other things that jumps to mind is charitable donations.
If you use one of those tax software, it'll figure out which is better.
- JudyLv 71 decade ago
I'm assuming you're married filing jointly - in that case, last year you got a $10,000 standard deduction. It's a little higher this year. If your total interest for the year on the house was $12,000, then yes, that alone would make it worth your while to itemize. Download the instructions for 1040 Schedule A at irs.gov to see other things you can deduct. You'll have real estate taxes, and depending on where you live, might also have state and local income taxes - those can also be deducted. If you have decent medical insurance, you're not likely to be able to take any med expenses since you can only deduct med expenses that exceed 7.5% of your income. There might be some other items you can deduct also.
Your kids are exemptions, and you still get the ones for them and for yourself and your spouse - exemptions and deductions are two separate items. Then you probably also get a child tax credit - this won't change if you itemize.
- Anonymous1 decade ago
I second the answer to use an accountant. Even after I'd paid my way-too-high-priced L.A. accountant his $400 to do my taxes, I still ended up with about $800 more than I would have had I done my own stupid taxes, plus he was able to go back and revise my previous two years' tax filings (which I'd done myself), and he got me an extra $700 for those years. So I netted an extra $1500, and I didn't have to spend the time and frustration doing my own stupid taxes.
- 1 decade ago
GO to an accountant. They can make you money. Don't try this buy yourself or you will lose some deductions.