Magic 8 ball says yes. Here’s what to know to itemize tax deductions as a homeowner.
Taxes? Gross! Who wants to think about government paperwork, especially when your hand still aches from signing the 977 forms required to buy your first house? But listen up: As a new homeowner, you can typically wave bye-bye to the 1040-EZ form and say hi to itemizing your deductions on Schedule A.
That means you can combine the thousands you’re now paying in mortgage interest and property taxes with what you’re already paying in state and local income taxes. And bam! Suddenly, you’ve got more to deduct than the $6,300 standard deduction.
For recent first-time homeowners Ben and Stephanie Liddiard, buying a rambler in Layton, Utah, led to tax savings that…