Welcome Guest. Sign in or Signup

3 Answers

Buying First House – how will our tax return be different?

Asked by: dtba 610 views YA Discussion

First time home buyers – me and my husband. We have 3 children and both work full time. He make about 10/hour and I make 11/hour.

How will purchasing this house effect our tax return – what will be different?

3 Answers

  1. Quick Answers on Oct 20, 2012 Reply

    Year 1, probably not much.

    Year 2, probably not much.

    As MFJ, you already get a standard deduction of $ 11900 for 2012. You would only itemize and see a difference if your schedule A total is more than that.

    Let’s say you pay $ 10,000 in mortgage interest, $ 2000 in property tax and $ 1000 in charitable donations. That adds up to $ 13,000. The additional $ 1100 over the standard deduction might lower your taxes by $ 165 to $ 275.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

  2. tro on Oct 20, 2012 Reply

    instead of using the standard deduction of $ 11900 you may be able to use Sch A, itemized deductions, which will reduce your taxable income that much more

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

  3. Judy on Oct 20, 2012 Reply

    First year, probably won’t unless you bought it very early in the year.

    If the mortgage interest you pay that year plus property tax plus any other allowable itemized deductions you have that year, like state and local taxes, add up to more than your standard deduction for that year (for 2012 on a joint return, $ 11900) you’d list your deductions on a schedule A rather than taking a standard deduction – the difference would save you a little in taxes.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes

Your Reply