ill b moving into my new home in about 30 days, do i need 2 know anything about tax credits or tax dectuctions

Question

like should i be saving my medical recietes , or all the reciets from remodeling my house i.e new carpet, paint and such .. is that worth anything at the end of the year tax time. thank you

Answer 1

If you own a home, your deductible expenses might be enough to itemize even if you didn't before. You'll get a form from the mortgage company at the end of the year telling you how much was paid from your escrow account for taxes, and how much interest you paid. These are eligible itemized deductions.

Your new carpet and paint are not deductible, they're just personal expenses. If you do something like adding on a room or replacing a roof, save the receipts - those might be usable when you sell if you owe any taxes then on the sale, but can't be used for the current year.

Save medical receipts, but be aware you can only deduct medical expenses that exceed 7.5% of your AGI, so if you have a decent income and don't have a horrible year medically, you probably won't be able to deduct them.

Download a copy of schedule A and the instructions to see what other items you can itemize.

Answer 2

yes save all receipts related to a schedule A(see irs.gov- itemized deductions) or at least keep a little journal, the remodleling of your home wont help tax wise but you may qualify for certain credits depending on what state you live in.
Some states have insulation credits, property or real estate tax credits, etc. so it may be a good idea to check out your state website.