Has anyone actually itemized their deductions after buying their first home? I'm wondering if it's even worth it with the standard deduction being so high now ($27,700 for married filing jointly in 2025). We just bought our first home for $350k with a conventional mortgage at 6.2%, and I'm trying to figure out if itemizing would be better than taking the standard deduction.

Don't be too disappointed about potentially taking the standard deduction! Even if itemizing doesn't benefit you in year one, remember that homeownership has other financial advantages beyond just tax deductions. Also, your situation might change in future years - you could have higher charitable giving, medical expenses, or state/local taxes that push you over the standard deduction threshold. Many homeowners find they alternate between itemizing and standard deduction from year to year. One thing to consider: if you paid any points at closing on your conventional loan, those are typically deductible in the first year and could help push your itemized total higher. Also, don't forget about any PMI premiums you'll be paying - if the deduction gets extended for 2025 (which is still uncertain), that could add another $1,000-3,000 to your itemized total depending on your loan amount and PMI rate. Keep good records of everything just in case, and consider using tax software that can easily compare both scenarios for you!

One thing nobody mentioned that surprised me - the IRS actually has a database called "Exempt Organizations Select Check" where you can verify if your donation is to a qualified organization. I almost claimed a donation to a group that wasn't actually tax-exempt! Also, if you get something in return for your donation (like auction items, dinner tickets, merchandise) you can only deduct the amount ABOVE the fair market value of what you received. My cousin made this mistake with a charity gala - paid $500 for a ticket but the dinner value was $100, so only $400 was deductible.

This is such a helpful thread! I'm in a similar situation with about $2,800 in donations last year. One thing I learned from my tax preparer is that if you're close to the itemizing threshold, you might want to consider "bunching" your donations - basically making multiple years' worth of donations in one tax year to push you over the standard deduction limit, then taking the standard deduction in the off years. For example, instead of donating $3,000 every year, you could donate $6,000 every other year and itemize those years while taking the standard deduction in between. This strategy works especially well if your other itemizable deductions (mortgage interest, SALT, etc.) are already close to the threshold. Also, don't forget that if you're over 70½, you can make Qualified Charitable Distributions directly from your IRA to charity, which counts toward your required minimum distribution but isn't included in your taxable income. It's sometimes better than the regular charitable deduction depending on your situation.

Instead of trying to get the refund back (which is difficult once offset), you might want to adjust your withholding for the rest of 2024 to get more money in each paycheck. This approach worked better for me than fighting the offset system for months. It's like choosing to take a different route when the main road is blocked - you'll still reach your destination (getting your money), just through a different path. Michigan's offset appeals success rate is much lower than simply adjusting your tax situation going forward.

I went through this exact situation in Michigan last year! First, check if you received a "Notice of Offset" in the mail - it's legally required and should specify which agency claimed your refund. If you haven't gotten it yet, call Michigan Treasury at (517) 636-4486 and ask for the offset department directly. They can tell you which agency has your money and provide contact info. For recovery, you have a few options: 1) If it's a mistake, file Form 4419 with documentation proving the debt isn't yours, 2) For hardship cases, contact the collecting agency (not Michigan Treasury) to request a hardship review - you'll need financial statements and proof of hardship, 3) If it's child support, contact Friend of the Court immediately as they have specific procedures. The key is acting fast - most agencies have 60-90 day windows for appeals. Don't waste time with general customer service lines; go straight to the offset/collection departments of the specific agency that took your refund.

My husband and I went through something similar with his parents. Make sure your accountant checks with you before filing! Our new accountant filed it as a rental property without telling us (after we had discussed it wasn't) and we ended up having to file an amended return. One option might be to increase the rent to meet the 80% threshold if your in-laws can afford it, then gift some money back to them separately if you want to effectively subsidize their housing. But talk to a qualified tax professional about this approach first!

I'm dealing with a similar situation where I'm renting to my brother at below market rate. After reading through all these responses, it sounds like the key issue is whether you're charging at least 80% of fair market rent. At $850 vs $2000 market rate, you're only at about 42%, so you'd definitely fall under the personal use/hobby loss rules. This means you can report the rental income but your deductions would be limited to that income amount - you couldn't create a loss to offset other income. The advice about potentially raising the rent to meet the 80% threshold is interesting, but make sure any gifting arrangement is done properly to avoid gift tax issues. The annual gift tax exclusion for 2024 is $18,000 per recipient, so you'd need to stay within those limits. Your previous accountant's conservative approach was probably the safest way to handle it. Better to be cautious with the IRS than risk an audit over aggressive deductions on a family rental situation.

What nobody mentions about H&R Block's "maximum refund guarantee" is that you have to PROVE another method gets you a bigger refund before they'll refund your preparation fees. When I found out they missed a $1,200 deduction last year, I had to pay another preparer to do my taxes again just to qualify for H&R Block's guarantee. By the time I paid the second preparer, the refund of H&R Block's fees barely covered my additional costs. These guarantees are just marketing gimmicks designed to sound good while being practically useless.

This thread is so eye-opening! I've been using H&R Block for years thinking their "guarantee" actually meant something. Reading everyone's experiences makes me realize I've probably been overpaying and missing deductions this whole time. The part about having to prove another method gets you a bigger refund just to get your prep fees back is ridiculous - what's the point of a guarantee if you have to pay someone else first to prove they messed up? That's like a restaurant guaranteeing good food but only refunding your meal if you buy food somewhere else to prove theirs was bad. I'm definitely switching this year. Between the overpriced fees, undertrained staff, and misleading guarantees, these big chains seem more focused on profits than actually helping customers. Thanks for sharing all these alternatives - going to look into some of the services mentioned here.