The April 15th deadline to file your taxes is less than two weeks away. Worrying that things would be complicated for me as a first-time homebuyer, I had my taxes done this year by a CPA. Here are a few quick tips for fellow new homeowners that I learned from the experience.
Claim the 2009-10 First-time Homebuyer Tax Credit
You could qualify for the up-to-8,000 credit if you bought a home in 2009 or are in contract for your new home on or before April 30, 2010 and have not owned a home three years prior to buying.
- Don’t e-file. You must file an old-fashioned paper tax return. You can still use online software, just be sure to print and mail all your documents.
- Make sure the IRS receives your return by mailing it as Certified Mail with a Return Receipt.
- Include your HUD-1 or Form 540.
Deduct Private Mortgage Insurance (PMI) and Property Taxes
Did you put less than 20% down on your home purchase and are now required to pay PMI? This year, you can deduct that cost.
- On your tax forms provided by your lender, look for the amount of PMI premiums paid in the last year to add to your Schedule A when filing.
- All homeowners can also add tax payments of up to $500 for single homeowners or up to $1,000 for married taxpayers in addition to their standard deduction.
Save those receipts for energy-saving improvements
Receive a credit of 30% of the purchase price for energy-efficient improvements on your primary residence made between January 1, 2009 and December 31, 2010. The maximum credit amount is $1,500 over the two-year period.
- Qualifying improvements can include: insulation, exterior doors and windows, approved natural gas, propane or oil water heaters.
Because my tax preparation skills are usually limited to answering the yes or no questions on Turbo Tax, please speak with your professional tax preparer or accountant for specific information about these and other tax related questions. Also visit irs.gov for official tax information.