Question

Tax return with new house & 1099

Forum|Forum|2 years ago
September 27, 2023
3 replies
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I have a question about how to properly file taxes for 2022 when I purchased a home and also did contract work with a 1099 as a held a job and have a W-2. Please help o filed and extension

Ask the Experts - Extension - Sept 2023

K

Katherine S 63

If you purchase a home that will be your personal residence, there is nothing you have to do except add your mortgage interest (1098 Mort statement) and property taxes paid to your Deductions and Credits. This will help you see if maybe you can Itemized instead of using the Standard deduction.

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/tax-deduction-wisdom-should-you-itemize/L8Ln7K0Gp

As far as doing contract work, you should have received a 1099 NEC. If you are a sole proprietorship, you will want to add that income and expenses to Self employment income (found in Wages and Income) .

Here are my favorite Self employments links. Please read them over to learn more.

Self employment tax Talks about social security and Medicare taxes

Self employment tax hub with calculator Helps to answer questions and figure out if you need to pay estimated taxes

Self Employment income and expenses Talks about income and expenses.

If you have any questions while doing your taxes, click the LIVE HELP.

I sure hope this has helped.

If you reply back, I will try to keep an eye open to assist further.

Please give me a thumbs up if this was helpful.

Katie S.

Katherine S 63

X

xmasbaby0

Employee

It sounds like as a new homeowner you are asking about entering itemized deductions for mortgage interest and property tax, etc., which you may be able to do. However, do not confuse those entries which go on a Schedule A with the business expenses you enter on your Schedule C. Since you are self-employed you will complete a Schedule C for your business expenses.

You will need to use either online Self-Employed or any version of the CD/download in order to prepare a Schedule A and/or Schedule C.

HOMEOWNERSHIP DEDUCTIONS

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher. Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.

Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950 (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950 (65 or older + $1750)

MARRIED FILING JOINTLY $25,900 (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD $19,400 (65 or older +$1750)

Home Ownership

There is not a first time home buyers credit on a Federal return. That ended in 2010. If your state has such as credit, you will be able to enter it when you prepare your state return.

Buying a home is not a guarantee of a big refund. Your deductions for homeownership combined with your other deductions (if any) must exceed your standard deduction to change your tax due or refund. If you purchased your home late in the year, you do not even have a full year of home

ownership deductions.

Your closing costs on your new home are not deductible except for prepaid interest, prepaid property tax or loan origination fees. There are no deductions for appraisal, inspections, title searches, settlement fees. etc.

Your down payment is not deductible.

Your homeowners insurance for fire, hazard, flood, etc. is not deductible for your own home.

Home improvements, repairs, maintenance, etc. for your own home are not deductible.

Homeowners Association (HOA) fees for your own home are not deductible.

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2022. You should have a 1098 from your mortgage lender that shows this information. Lenders send these in January/early February.

SELF-EMPLOYMENT

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Q

quorumof1

Hi There:

Turbo Tax Online can satisfy all your needs. If you don't already have an account. Then log in per below and enter W2, 1099 and house info, along with any additional information as required. The best part is that you are not alone. After logging in, simply click, "Talk to Expert" and we will be able to answer all of your questions.

Turbo Tax Link

M

Mamiran3Author

Thank you. I will have to take a little more time on the turno tax site I was a bit confused. Thank you for your help.

J

JandKit

Hi Mamiran3,

Thank you for this question. October 15th is the deadline for filing your 2022 taxes. The purchase of your home, depending on the time of purchase, could require gathering all of the information concerning that purchase of your home. It is possible that the mortgage interest and property taxes could be of help in filing an itemized deductions return this year. Second, the 1099 for contract work will require you to gather any and all expenses that you spent in earning that income. If you haven't already, collect all of the receipts and other items that reflect your cost in perfoming duty implied on the 1099. These expenses can be in valuable in lowering the taxes due on the profit earned for the contract work.

Good luck to you!

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