Frequently Asked Questions About Homebuying & Taxes

Mark Steber

Chief Tax Information Officer

Published on: October 10, 2023

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If you’ve purchased and own a home (congrats!), there are a variety of tax breaks you could qualify for, especially if you plan to itemize your deductions. But we’ll cover that and all the best tax tips and benefits for homeowners. Keep reading to make sure you’re getting every dollar you deserve when it comes time to file your taxes.

What mortgage items are tax deductible for first time homebuyers?

For starters, your home loan interest expense, property taxes, and any energy-saving improvements you’ve made to your home could be credits or deductions you’d qualify for.

Tax-deductible mortgage items

Mortgage interest deduction
Property tax deduction
Points on financing
Energy-saving improvements credit

I’m a first-time homebuyer. Now that I own a home, should I itemize my tax deductions?

Once you buy a home, it is not uncommon for the interest, property taxes, and other home-related deductions to exceed the standard deduction you’re entitled to. This means, without getting too complicated, it may be more beneficial to you to itemize and therefore list your deductions, rather than taking the overall standard deduction.

Standard vs. itemizing your deductions

You could exceed the allowed standard tax deduction
Whereas, itemizing allows for more tax deductions, such as,
- Charitable donations
- State income taxes or paid sales tax
- Personal property taxes
- Medical deductions

These deductions can add up fast but best of all, you get to pick the bigger of the two deductions. The standard deduction that everyone gets, or your unique itemized deductions. How great is that? Your Tax Pro can help you decide which works best for your situation.

Are there any other tax benefits to owning your home?

Aside from the tax benefits we’ve already mentioned, there is also the possibility to deduct a home office if you're self-employed. Also, you may be able to deduct property taxes paid on the home. And if you made home improvements for medical reasons, like constructing entrance ramps, widening doorways, or installing railings or bars, they, too, may be tax deductible.

More tax benefits for homeowners

Home office, if self-employed
Paid property taxes
Home improvements made for medical reasons

Finally, any additional tax tips for new homebuyers?

Pay attention to what you get in the mail. It's not always junk! Be on the lookout for mortgage interest statements, Form 1098 from the IRS, and any information on your property taxes. Save everything related to payments made toward your house and use this information when filing your taxes. Or better yet, turn these documents over to your Tax Pro so that when it’s time to file your return, you’re prepared to get every dollar you deserve, proud homeowner.

As stressful as it can be to buy a home, it's an exciting time and there is a lot of tax benefits available to you. So, make sure you talk to an experienced Tax Pro to learn about all your best deduction opportunities by scheduling an appointment at your local Jackson Hewitt.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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