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Old 02-05-2015, 10:20 AM
 
Location: NC
597 posts, read 1,260,667 times
Reputation: 171

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In 2014, we were first time home buyers and also had our first kid . What are the implications in my 2014 return?

What can I claim related to the home?
And for the baby? (We had had an employer funded HSA that we contributed to & used to pay most of our out of pocket expense).

Till previously we were doing standard deductions, this year I suppose I'll be itemizing. I have always filed myself using tax-act online, but wondering if this is more complicated warranting a preparer.

Thanks!
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Old 02-05-2015, 10:46 AM
 
1,212 posts, read 1,852,025 times
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Congratulations on the two big life events!

Here's a starter list:
1. Mortgage interest, PMI (depending on income), and real estate taxes can be deducted on Schedule A; you'll be able to itemize your deductions instead of the standard deductions; then anything else on Schedule A you can claim including medical expenses not reimbursed. Don't forget mileage.

2. Claim a dependant, it'll be another $3950 off your taxable income.

3. childcare expenses and child tax credit


you should be fine with turbotax.
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Old 02-05-2015, 11:49 AM
 
Location: Phoenix, AZ
1,801 posts, read 2,071,616 times
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I'm in a similar situation as the OP. For childcare expenses do you have to provide some sort of documentation? We use a nanny and pay her in cash 90% of the time.
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Old 02-05-2015, 11:53 AM
 
24,843 posts, read 32,298,423 times
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Quote:
Originally Posted by ShampooBanana View Post
I'm in a similar situation as the OP. For childcare expenses do you have to provide some sort of documentation? We use a nanny and pay her in cash 90% of the time.
Only at an audit.

It is OK to pay in cash.........but, checks and credit cards are easier to keep track of things.
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Old 02-05-2015, 12:07 PM
 
906 posts, read 1,269,678 times
Reputation: 1047
Quote:
Originally Posted by gcretro View Post
In 2014, we were first time home buyers and also had our first kid . What are the implications in my 2014 return?

What can I claim related to the home?
And for the baby? (We had had an employer funded HSA that we contributed to & used to pay most of our out of pocket expense).

Till previously we were doing standard deductions, this year I suppose I'll be itemizing. I have always filed myself using tax-act online, but wondering if this is more complicated warranting a preparer.

Thanks!

You don't need a preparer, Turbotax or any equivalent software will ask you all the relavent questions.

You can deduct your mortgage interest, PMI, and property taxes (although some line-items in your property tax bill are not tax deductible--for instance, I cannot deduct curbside recycling although its collected with my property taxes--there is a good explanation of what is allowed and not allowed in Turbotax when you get to that section).

You will get an additional exemption for your baby (congratulations!) which is automatically accounted for the minute you put in your childs information (ie, SSN) into your tax software.

The child tax credit and dependent childcare credit phase out at certain incomes, you can read more about it by Google searching. If you have a high enough income to be impacted by the phase out in childcare credits, you should look into whether your company has an FSA for daycare expenses. You can withhold up to $5000 of income pre-tax (per couple) to pay for daycare expenses.
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Old 02-05-2015, 12:18 PM
 
Location: Vermont
5,439 posts, read 14,743,656 times
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Turbotax will walk you through it. If your itemizations are greater than your standard deduction, then it makes sense to otemize, if not then don't bother itemizing. Standard deduction is $12,400 for married filed jointly.

The big deductions are property taxes, mortgage interest. I think you also deduct state sales taxes or state income tax paid on top of property taxes. Turbotax will work that in automatically.
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Old 02-05-2015, 12:23 PM
 
906 posts, read 1,269,678 times
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Quote:
Originally Posted by joe moving View Post
The big deductions are property taxes, mortgage interest. I think you also deduct state sales taxes or state income tax paid on top of property taxes. Turbotax will work that in automatically.
State and local income taxes are deductible, so its one of the nice benefits of itemizing if you live in a state with high taxes (unless it trips the AMT, which is my situation!).
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Old 02-05-2015, 12:23 PM
 
Location: Houston Metro
1,104 posts, read 1,313,679 times
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You can deduct the loan origination fees/points on your new mortgage as well.
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Old 02-05-2015, 12:24 PM
 
18,719 posts, read 13,492,794 times
Reputation: 14107
Quote:
Originally Posted by ShampooBanana View Post
I'm in a similar situation as the OP. For childcare expenses do you have to provide some sort of documentation? We use a nanny and pay her in cash 90% of the time.
Quote:
Originally Posted by Driller1 View Post
Only at an audit.

It is OK to pay in cash.........but, checks and credit cards are easier to keep track of things.


This is a potential problem. Is the nanny your employee? Is she a contractor? Do you pay payroll taxes or 1099 her?
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Old 02-05-2015, 02:18 PM
 
1,212 posts, read 1,852,025 times
Reputation: 1137
Quote:
Originally Posted by aus1ander View Post
You don't need a preparer, Turbotax or any equivalent software will ask you all the relavent questions.

You can deduct your mortgage interest, PMI, and property taxes (although some line-items in your property tax bill are not tax deductible--for instance, I cannot deduct curbside recycling although its collected with my property taxes--there is a good explanation of what is allowed and not allowed in Turbotax when you get to that section).

You will get an additional exemption for your baby (congratulations!) which is automatically accounted for the minute you put in your childs information (ie, SSN) into your tax software.

The child tax credit and dependent childcare credit phase out at certain incomes, you can read more about it by Google searching. If you have a high enough income to be impacted by the phase out in childcare credits, you should look into whether your company has an FSA for daycare expenses. You can withhold up to $5000 of income pre-tax (per couple) to pay for daycare expenses.
what income level does the dependent care expense phase out? I see it for the child tax credit but not the dependent care expenses.

Last edited by arrieros81; 02-05-2015 at 02:27 PM..
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