Did your tax return increase after you bought a house?

posted 2 years ago in Home
Post # 2
Member
1441 posts
Bumble bee
  • Wedding: September 2014

Mine did by a few thousand dollars … in the first 20 years of a 30 year mortgage, you are basically paying almost all interest, which is tax deductible.

Post # 4
Member
10489 posts
Sugar Beekeeper
  • Wedding: January 2011

HannahGrace:  Not here unfortunately 🙁

We did qualify for the first time home buyer’s tax credit.  The max credit is $5000, which meant an additional $750 back at tax time.

Post # 5
Member
7281 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

Yes, the deduction for mortgage interest and the tax credit for the energy efficient renos we had done did help lower our tax bill. We went from owing $5k to the feds to getting a refund of about $100. BUT, we also had more withheld from our checks each month to avoid the nasty tax bill, so only some of that tax savings is attributable to the interest and energy efficiency stuff.

Post # 7
Member
10489 posts
Sugar Beekeeper
  • Wedding: January 2011

hollyberry4:  The CRA one no longer exists?  I hadn’t heard anything about it being discontinued.

Post # 8
Member
6273 posts
Bee Keeper
  • Wedding: October 2013

i got a little bit more back with my house but i got a huge tax refund after i got married.

 

Post # 9
Member
187 posts
Blushing bee

AB Bride:  hollyberry4:   I think you two are talking about different countries. 

To the OP, what country are you in?

In the US it only helps if you can itemize more than the standard deduction. For a married couple filing jointly the standard deduction is 12,200, your mortgage interest will take up a big chink of that (you can check your statements and see how much per month goes to interest), and you may be able to itemize other things like medical, work and education expenses, and charitable donations. Without knowing your whole financial picture we can’t tell you how much it will help. If you google turbotax estimator it should give you a good idea of what you will get back.

Post # 10
Member
415 posts
Helper bee

No, not really. A hundred bucks or so.

Post # 12
Member
1441 posts
Bumble bee
  • Wedding: September 2014

ajillity81:  Ha, I am going to get killed in taxes once I get married.  Still worth it though! 

OP, it looks like you are in the US as I am, so I’m hopeful that you will get decent money back from owning a home.

Post # 13
Member
8419 posts
Bumble Beekeeper
  • Wedding: April 2013

hollyberry4:  Not by much for us, however our taxes and interest are both pretty low.  I think you may get more back if you’re paying a PMI though.

Post # 14
Member
10489 posts
Sugar Beekeeper
  • Wedding: January 2011

MakingHerWait:  I figured if other countries had a similar credit, the specific details would be different!

Post # 15
Member
6866 posts
Busy Beekeeper
  • Wedding: March 2014 - A castle!

We’re in the US. We have an FHA loan (so we make PMI payments). We didn’t see much of a change at tax time. We file separately and our accountant just figures out who will get more back by claiming the house. But it really didn’t change anything for us.

Leave a comment


Sent weekly. You may unsubscribe at any time.

Find Amazing Vendors