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February 7, 2025
Question

Where do I add that I bought a house

  • February 7, 2025
  • 1 reply
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I bought a house where do I add that

    1 reply

    JohnB5677
    February 7, 2025

    You can include your home's mortgage interest and property taxes under Deductions and Credit.

     

    You should have a Form 1098.

    To post the 1098 you should follow these steps:

     

    Under Federal

    1. Select Deductions and Credits
    2. Scroll to Mortgage Interest and Refinancing (Form 1098) - [Add/Edit]
    3. Select the 1098 you want to post Add a new 1098
    4. Follow the interview and post the details from your 1098.

    This will be included as part of your Itemized deductions.  

    For this to be a benefit, the total of Itemized deductions must be greater than the Standard deduction.

     

    The standard deduction amounts for 2024 are:

    • $29,200 – Married Filing Jointly or Qualifying Surviving Spouse
    • $21,900 – Head of Household
    • $14,600 – Single or Married Filing Separately

    For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are:

    • $1,950 for Single or Head of Household
    • $1,550 for married taxpayers or Qualifying Surviving Spouse

    There have been many changes to the Itemized deduction limitations.  Here are some of the limitations to Itemized deductions

    • Medical expenses: You can only deduct the amount of your medical and dental expenses that is more than 7.5% of your AGI.
    • Mortgage Interest:  You can deduct the interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary home or a second home. If you are married filing separately, the limit drops to $375,000.
    • Local Taxes: Your deduction of state and local income tax, general sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).
    • Business expenses for employees is no longer allowed.
    • There may be other limitations that are not listed.
    • Finally, the total of all deductions must be greater than the Standard deduction.

    You can also see: How do I change from the standard deduction to itemized (or vice-versa)?

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