The first tax benefit you receive when you buy a home is the mortgage interest deduction, meaning you can deduct the interest you pay on your mortgage every year from the taxes you owe on loans up to $750,000 as a married couple filing jointly or $350,000 as a single person.

The interest you pay on your mortgage is deductible (in most cases) If you own a home and don’t have a mortgage greater than $750,000, you can deduct the interest you pay on the loan. This is one of the biggest benefits to owning a home versus renting–as you could get massive deductions at tax time.

Are there any new tax credits for first time home buyers?

The short answer is, unfortunately, no. The new homeowner’s tax credit that many filers are familiar with is the “First-Time Homebuyer Credit,” which was passed in 2008 under HERA or the Housing Economic and Recovery Act under Obama. This tax credit was up to $7,500 for first-time homebuyers, which was very exciting at the time.

Are there any tax changes for new home buyers?

For higher-cost homes, this is a big impact. As a new home buyer, if you are still prospectively shopping, one thing you should consider is putting greater emphasis on putting more down when you buy a home. The second big tax change to be aware of as a new home buyer is that the standard deduction has doubled.

When did the first time Home Buyer credit end?

If you’re still looking for the first-time home buyer credit, it unfortunately no longer exists. The program ended in 2010. However, people who purchased homes before 2010 can still benefit from the tax credit initiative. Specifically, you may still be eligible if your closing took place on or before September 30, 2010.

When do you claim the new homeowners tax deduction?

When you purchase a home, there are a number of fees and taxes applied through the closing process beyond the principal amount you pay on the home. Only the taxes associated with your house are going to be eligible to claim a new homeowners tax deduction.