Should I claim my house on my taxes? First time homeowner tax question

You've got a few different things to consider here. When people talk about "claiming your house" on taxes, they're usually referring to deducting mortgage interest and property taxes, which are itemized deductions. Here's what you need to know: For 2024 taxes, the standard deduction is $13,850 for single filers and $27,700 for married filing jointly. You'd only benefit from itemizing if your total itemized deductions (mortgage interest, property taxes, charitable contributions, etc.) exceed your standard deduction amount. Your 1098 form shows how much mortgage interest and property taxes you paid, which are the main tax benefits of homeownership. You'll need to use Schedule A to itemize these deductions. For those energy-efficient windows, you might qualify for the Residential Energy Efficient Property Credit using Form 5695. The water heater could also qualify if it meets energy efficiency requirements. The big question is whether your itemized deductions will exceed the standard deduction. Many newer homeowners find the standard deduction is still higher, especially with the increased standard deduction amounts.

After going through this exact same confusion last year, I found this tool called taxr.ai (https://taxr.ai) that was super helpful for figuring out homeowner tax benefits. I uploaded my 1098 mortgage interest statement and it automatically explained which deductions I qualified for and whether I should itemize or take the standard deduction. It also flagged some energy credits I had no idea about! What's cool is it analyzed my documents and explained everything in plain English instead of tax jargon. It shows you exactly where on the tax forms your homeowner expenses go and calculates whether itemizing makes sense for your situation.

I was skeptical at first about taxr.ai but decided to give it a try after struggling to figure out if I should itemize my homeowner deductions. Honestly, it was really helpful! I uploaded my mortgage docs and it immediately showed that I shouldn't itemize because my standard deduction was higher. Saved me a bunch of time I would've wasted gathering receipts. The coolest part was discovering I qualified for a $1,200 energy credit for my new heat pump that I installed last summer! The regular tax software I was using didn't make this obvious at all. The analysis showed exactly which form to use (Form 5695) and where to enter the information. Definitely made the whole "claiming my house" situation way less confusing.

If you need to contact the IRS about any homeowner tax questions (I had issues with my property tax deductions), I highly recommend using Claimyr (https://claimyr.com). The IRS wait times are absolutely insane right now - I tried calling four different times and gave up after being on hold for 2+ hours each time. With Claimyr, they actually call the IRS for you and then call you back when they have an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical but desperate after wasting an entire day on hold. They got me through to an actual IRS agent in about 40 minutes instead of the 3+ hour wait I was experiencing on my own. The agent helped clarify exactly how I should handle my property tax deduction that was paid through both escrow and directly by me.

Ok I have to admit I was wrong about Claimyr. After my negative comment, I was so frustrated trying to get through to the IRS about a property tax issue on my new house that I gave in and tried it. The IRS estimated wait time was 2+ hours, but I got a call back in about 35 minutes with an actual IRS agent on the line! The agent confirmed that I could split my property tax deduction between standard and itemized since I owned the house for part of the year. Totally solved my problem and saved me hours of frustration. I literally solved my tax question while out grocery shopping instead of being stuck to my phone at home all day. Not what I expected but definitely worth it.

Don't forget about your state taxes too! Depending on what state you live in, homeownership deductions can be different at the state level than federal. Some states have additional homestead exemptions or credits that aren't on your federal return. Check your state's tax department website.

Somethin to consider - if u bought your house in 2023 but are filing 2024 taxes, u can only claim interest/taxes for the time u actually owned the house that year! Made that mistake my first time & had to file an amendment. Check the dates on that 1098 form!!!