I bought a house and I have a question.?

Question

I have been in my house going on 3 months now. What items besides day care and education can I claim on my 2007 taxes? Also do I have to show proof?

Answer 1

If you've only been in your house three months, it's possible that you might not have enough in mortgage interest and real estate taxes to itemize this year - even if you don't, you probably will next year since you'll be making the payments all year.

You don't have to itemize to take day care expenses or education credits.

You don't have to show proof unless you get audited and the IRS asks for it. Just be sure that you have it. For day care, you'd need the receipts or an annual statement from the daycare center. Your school will send you a form showing the tuition and fees you paid, so you can figure your education credit. Save the day care receipt and the form from the school - not a bad idea to staple them to your copy of your tax return.

Answer 2

Some of the costs associated with buying your home (mortgage interest, points, property taxes) are itemizable deductions. These go onto a Schedule A, along with other items, and, if they total more than your standard deduction, reduce your taxable income.

The other items you mentioned, day care expenses and education expenses, can generate a credit to reduce your tax. It doesn't matter for them if you itemize or take the standard deduction. There are many other credits from common (savers credit if you put money in an IRA or 401K) to uncommon (depletion on investments in mineral producing properties.)

You need to either use some good software and read up on taxes, or go to a professional to ensure you pay the lowest legal tax.

Answer 3

Look in the IRS instructions for itemized deductions, you can do this online for the complete info.

It's a good idea to stay away from home office. This is an area the IRS picks up on. Computer expenses only work if your business is computer-based. You do not normally have to show any proof at the time you file the return; just save the supporting documents and receipts for ten years in case you are ever called in for an audit.

Answer 4

interest paid on the mortgage as well as any points on the closing ...also property taxes on the home,

any medical which exceeds 7.5% of your income...
charitible contributions such as tithing and even goodwill donations,

and you will have to show proof in the event of an audit, however if you are buying your home you shoudl receive a 1098 around january that shows the interest, prop tax (if pd through mortgage comp), points etc...
for the daycare you will need the ssn or the ein of the provider for the tax return
and the school should also send you a statement showing deductible tuition paid

you can also recieve credit for interest paid on student loans however this is an above line credit

http://www.irs.gov/taxtopics/tc500.html
has more information than you will ever want to know!!!!!!!!!!

Answer 5

You can itemize and also declare any points you paid during the closing of your house and interest you paid as part of the payments. Your lender will send you a form that states how much you paid.

Answer 6

There are many things which you are eligible to claim, e.g. mortgage interest, insurance, taxes, repairs, etc.
For the small amount it will cost, see someone like H&R Block. People may poke fun at them, but they will save you a bundle. If you don't want to do this, buy a TurboTax program and do it yourself, assuming you are comfortable on a computer. Again, this is well worth the price!

Answer 7

I would suggest you contact a financial adviser. A company I would suggest is New York Life. There website is http://www.newyorklife.com/. Another possibility is to contact a CPA (Certified Public Accountant).
I hope this helps

Answer 8

Alarm system, energy efficient appliances, and windows, and anything green, a hybrid car... thats all I can think of.

Answer 9

home office...PC, printer, office supplies....