How do you compute a tax return for being a homeowner/having a home mortgage in florida?

Answer 1

As a homeowner you very likely pay mortgage interest and property taxes which are deductible if you choose to itemize your deduction rather than take standard deduction. In most cases in which a homeowner has paid those items for most of the year they find that their itemized deductions are greater and thus an advantage. Itemizing also may make other items deductible which will increase your deductions and reduce your tax liability. Itemized deductions are reported on Schedule A and transferred to Form 1040. You have no state personal income tax in Florida so there is no advantage there.

Answer 2

Because you own a home you will be itemizing deductions. This means that you will be using the form 1040 long form and completing schedule A. Schedule A is a listing of all of your itemized deductions, such as real estate tax, sales tax (because you are a Florida resident) mortgage interest, points paid to purchase the house, charitable contributions etc.

Answer 3

You will not get to deduct sales tax on your schedule A unless Congress does something about it very quickly. That deduction lapsed and had not been renewed by the time Congress left to go electioneering. So oyu may not have enough to itemize. If you are married, you are looking at interest and property taxes being in excess of $12,000 for it to be worthwhile.