Home improvements tax deductions for first-time homeowner - what can I claim in 2025?

Thanks for the response! I was afraid that might be the case. So basically, I can only benefit from these expenses when I eventually sell the house? That's kind of disappointing considering how much we had to spend just to make the place livable. The heating system is more energy-efficient than the old one, but we didn't specifically choose it for that reason - the old one was completely broken. Would that still potentially qualify for an energy credit?

Yes, unfortunately those costs primarily benefit you when you sell by reducing potential capital gains taxes. I understand the disappointment - it's a common surprise for new homeowners. If your new heating system meets certain energy efficiency requirements, it might qualify for a tax credit regardless of why you installed it. Check the manufacturer's certification statement or energy star rating. The Residential Clean Energy Credit or Energy Efficient Home Improvement Credit might apply, depending on the specifics. These are credits, not deductions, so they directly reduce your tax bill dollar-for-dollar, which is much better than a deduction!

Does taxr.ai actually connect you with a real tax professional or is it just some automated system? I've tried other "tax help" sites before and they just gave generic advice I could've found on Google.

I'm interested but skeptical. How does it actually work with home improvement stuff? Like if I replaced my roof last year would it tell me if that's deductible or just add it to the basis thing the other person mentioned?

It's actually both - they use AI to analyze your documents and specific situation first, then they have tax professionals who review everything. I uploaded my closing documents, repair receipts, and property tax statement, and got personalized advice within hours. For your roof situation, it would analyze if the replacement qualifies for any energy efficiency credits, if any portion could be deducted as a home office expense (if applicable), and would track it as a capital improvement to your basis. They gave me a full report showing exactly how each expense should be treated tax-wise, with specific IRS references. They caught several things my previous tax guy missed completely.

Wait, how does this even work? The IRS never answers their phones. Is this just some service that puts you on hold for you or something?

Yeah right. I'll believe the IRS actually answered when pigs fly. Even my CPA can't get through to them in less than 2-3 hours. This sounds like some kind of scam.

It's not a hold service - they use technology that navigates the IRS phone tree and secures your place in line before calling you back when an agent is about to be connected. I was skeptical too, but it works because they've essentially cracked the algorithm of when/how to call. The IRS does answer phones, just not efficiently. What Claimyr does is continuously try different optimal times and navigation paths until they get through, then they transfer you once they've secured a spot with an actual human. It saved me hours of frustration and I actually got my question answered instead of giving up after being on hold forever.

That's a great point! I hadn't even thought about state-specific incentives. I'm in Pennsylvania - do you know if they have similar programs or where I should look to find this information?

Pennsylvania actually has several programs! Check out the PA Department of Environmental Protection website - they offer rebates for energy efficient appliances and heating systems through their PA Home Energy Program. Also look at your utility company's website as many PA utilities offer additional rebates. The PA Housing Finance Agency also has some programs for new homeowners making improvements. The state-level stuff isn't on your tax return directly but comes as separate rebates or credits that can be substantial. Some municipalities in PA also have property tax reductions for certain improvements, so check your local government website too!

I used TurboTax last year after buying my first house. It asks about mortgage interest and property taxes really clearly, but for energy credits you have to specifically look for those sections - they don't always come up automatically in their interview process. I almost missed the credit for my energy efficient windows until I specifically searched for it. Make sure you have manufacturer certifications for any energy efficient improvements. TurboTax has a section for these credits but you need to know to look for them under "Credits & Deductions" and then "Home Energy Credits.