Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I bought my first home in Nov. 09 and so 2010 was the first year that I had paid mortgage throughout the year. I've never itemized in the past but I suppose I will look into it this year. I believe the only deductions I am eligible for are student loan interest, property taxes, and mortgage. I just want to ensure that I understand this correctly because I generally file my taxes myself as I am a 27 y/o single male living alone with no dependents. Basically I will only want to itemize if those deductions amount to more than the standard deduction right? And so the only way my home purchase could "help" my tax return is in the situation where I would itemize? Any insight would be appreciated!
Last edited by Green Irish Eyes; 01-05-2011 at 02:19 PM..
Reason: Thread moved from Mortgages forum
I bought my first home in Nov. 09 and so 2010 was the first year that I had paid mortgage throughout the year. I've never itemized in the past but I suppose I will look into it this year. I believe the only deductions I am eligible for are student loan interest, property taxes, and mortgage. I just want to ensure that I understand this correctly because I generally file my taxes myself as I am a 27 y/o single male living alone with no dependents. Basically I will only want to itemize if those deductions amount to more than the standard deduction right? And so the only way my home purchase could "help" my tax return is in the situation where I would itemize? Any insight would be appreciated!
Use something like Turbo Tax, It makes doing taxes as easy as posting on City-Data. It really is easy.
Using a program like Turbo Tax would probably help. However, itemized deductions cover a lot more than mortgage interest and real estate property taxes. For instance, if your loan was an FHA loan, the mortgage insurance premium monthly payments are deductible on Schedule A. So is the upfront MIP, amortized over 84 months. If you live in a state with its own income tax, state income taxes are deducted on Schedule A. If you don't have a state income tax, you can deduct sales taxes (there is a table in case you didn't keep all of your receipts). Charitable donations are on Schedule A, as are any personal property taxes (ad valorem taxes) based on the value of the item/vehicle etc. So, there are a lot of things on Schedule A- check it out from the IRS website.
The one thing that you would not have in your itemized deductions would be the student loan interest. That is an "above the line" deduction that you can take whether or not you itemize or use the standard deduction.
Using a program like Turbo Tax would probably help. However, itemized deductions cover a lot more than mortgage interest and real estate property taxes. For instance, if your loan was an FHA loan, the mortgage insurance premium monthly payments are deductible on Schedule A. So is the upfront MIP, amortized over 84 months. If you live in a state with its own income tax, state income taxes are deducted on Schedule A. If you don't have a state income tax, you can deduct sales taxes (there is a table in case you didn't keep all of your receipts). Charitable donations are on Schedule A, as are any personal property taxes (ad valorem taxes) based on the value of the item/vehicle etc. So, there are a lot of things on Schedule A- check it out from the IRS website.
The one thing that you would not have in your itemized deductions would be the student loan interest. That is an "above the line" deduction that you can take whether or not you itemize or use the standard deduction.
Very good advice, even if my eyes glazed over a little
To the OP, it is entirely possible, depending on where you live and how much you make, and how much your mortgage is, that the standard deduction will still be the better deal for you. My husband and I have owned a house for almost 8 years now, and we have never itemized, as the standard deduction was better every time. For those of us with no dependants, in low cost of living areas and a fairly simple lifestyle, it can work out that way.
I would definitely agree that using something like TurboTax is an Excellent idea. That is where I do mine every year. It asks you A METRIC TON of questions, which allows it to figure out which sections you need to actually fill out and which you can skip. It picks up all the various "attached forms", such as the aforementioned Schedule A in this way.
And yes, as Mike mentioned, the student loans are an additional deduction, no matter which way you go, itemized or standard.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
