I have always done my taxes for myself online using one of the many free websites. However, in the last year I have bought a home and was wondering if its much more complicated??
-I am single
-had only 1 job this last year
-own only one home/property
is this something I can easily do myself or should I take to a professional
2006-11-17 05:47:08 · 12 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I'm an accountant. You can easily do your taxes yourself. Now that you have a home you'll probably be itemizing your deductions. You can now deduct your mortgage interest, property taxes, state income taxes, if any, and charitable contributions. I use TaxAct. It's really easy. All you have to do is answer the questions and fill in the information. And it's pretty inexpensive. I think I paid $15 to file both Federal & State last year. Don't use a professional. They'll charge you a couple hundred dollars AND they'll use the same kind of software as TaxAct or TurboTax. Good luck.
2006-11-17 05:54:54 · answer #1 · answered by jim 6 · 1⤊ 1⤋
You'll get appropriate tax information in the mail (form 1098) early next year on the amount of mortgage interest you've paid during 2006, which you can input into the tax filing program and it will calculate your itemized deductions on Schedule A. Property taxes are also an itemized deduction, as are state income taxes.
Note that there are some income limitations relating to total itemized deductions (partial phaseout of the total amount if you make over $X in adjusted gross income).
2006-11-17 05:59:39 · answer #2 · answered by mliu327 2 · 1⤊ 0⤋
It is pretty easy. You will just take the interest amount from the 1098 provided my your mortgage company and put that amount on the schedule A. then follow the directions to get it to the 1040. If you are using tax software, then it will probably do it for you. All you have to do is put in the number. You will also want to deduct property taxes paid in the year in question.
2006-11-17 08:19:28 · answer #3 · answered by Dave 3 · 0⤊ 0⤋
The only difference is filing a Schedule A with your 1040; if you were using 1040A short form, you have to go with the long form, unless your deductions aren't greater than the standard deduction. You want to gather all your closing papers together so you can deduct any points/closing costs, as well as the interest, real estate taxes, etc. that you might have paid this year. It's easy enough, if you don't try to go hunting for all your info while you're doing them..
2006-11-17 05:59:32 · answer #4 · answered by tmlamora1 4 · 0⤊ 0⤋
If you are a Chicago Bears fan you will surely need professional help! Just kidding, you should be able to do yourself how ever you may be surprise that the house might not result in an increase in your deductions over the standard deduction if you bought the house lat in the year.
2006-11-17 06:53:18 · answer #5 · answered by ? 6 · 0⤊ 0⤋
This should be simple enough, just refer to the explanations and things that apply, it should be a few more questions, and you'll need to enter the amount of interest paid, in order to get the appropriate breakdown and calculations, you'll need to have your tax statement from your lender for that year.
It won't be complicated, it's just a longer form. Not too bad.
2006-11-17 05:57:25 · answer #6 · answered by You are loved 5 · 0⤊ 0⤋
As most of the others have said, its not much different than before you bought the house. It is likely you would benefit from itemizing deductions. If you have not done so before, you should familiarize yourself with other itemized deductions that you may qualify for. You should keep records of these items to maximize your itemized deductions and minimize your tax liability.
2006-11-17 14:23:34 · answer #7 · answered by STEVEN F 7 · 0⤊ 0⤋
If you are using tax software it won't be any harder at all, you'll just have a couple extra lines to fill in. The interest you pay on your mortgage loan is deductible, so by filling in those few extra lines you will likely be pleasantly surprised!
Congratulations on owning a home...
2006-11-17 05:51:18 · answer #8 · answered by Anonymous · 1⤊ 0⤋
i love TaxCut. I used to artwork for value Waterhouse (earlier it replaced into PricewaterhouseCoopers) of their tax branch, and they used a professional version of TurboTax. I used it for years, then switched to TaxCut because it replaced into a similar as TurboTax, even though it fee a lot less. value tiers from loose to $40 9.ninety 5, counting on your tax project. i'm a ascertain / proprietor of a house.
2016-11-25 00:49:46 · answer #9 · answered by montieth 4 · 0⤊ 0⤋
it's easy to do but don't forget the figures on your HUD-1. If you can't decipher that, you need an accountant.
BTW, any accountant worthy of the name uses software that is more advanced than any off-the-shelf package from Best Buy or wherever.
2006-11-17 11:28:59 · answer #10 · answered by skip 6 · 0⤊ 0⤋