You've gotten that yearly W-2 in the mail just recently, reminding you that it is that dreaded time of the year again: tax time. But we've got you covered on Your Home. We sat down with a tax professional for insight on everything you need to know about your taxes, specifically if you're a homeowner. YNN’s Innae Park filed the following report.
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"People have actually been able to file since January 30; but, a lot of forms have been delayed. Chief ones are the education credit and a form that contains new depreciation. Some people have been filing since then. Some people won't be able to file for another couple weeks because they're waiting for statements from their broker," said Pat Catchpole, an H&R Block Tax Preparer.
If you're a new or first time homeowner, your taxes could be very different this year than any previous year, mostly because of what you can now deduct.
"The early years of owning a home, that's when you have the most interest because interest is always paid first and then principle. If 2012 is the first full year you've owned your home, you're going to see perhaps the most substantial deduction you'll ever see because that was the first full year of mortgage interest," said Catchpole.
If you refinanced your home in 2012, you might want to wait a little bit before you file your taxes.
"Let's say you financed midway through the year. You should have a statement from two lenders, your original bank and your new bank. Maybe you'll have three statements because your mortgage was sold from the refinancing. Wait for all of that stuff and, then, in addition if your taxes withheld from an escrow account that, that statement shows the correct amount of taxes that you've paid," said Catchpole.
Depending on the type of mortgage you have, you may have to purchase mortgage insurance, which you may be able to deduct.
"It was added in that flurry of legislation at the end of 2012. Not all mortgage insurance is deductible, you have to read the rules. But, if you've deducted it in the past and it doesn't show up on your statement, you just have to take an extra step and get in touch with the bank and see what the insurance," said Catchpole.
Also, if you own a second home the interest and taxes on that are deductible as well. Taxes can be difficult to understand if you've never had to do an itemized deduction. So, seek a professional if you need the help.