Tax return

[ShaineDownes]

What is the name of your state? Maryland

Hello, I am wondering about what kind of tax return I can expect when I file next year. I just purchased a home, so this will be a "first" for me. I understand that the interest you pay on your mortgage is a deduction, up to 100% LTV, but what exactly is the percentage that I get back from that? If I have an interest only loan and my monthly payment for example is $1000, out of that, what should I expect to get back? How about for closing cost when we purchased, etc?... I was also told to save receipts from items we purchased to do some home improvements. What is the deal with that? Does that include cosmetics, like simple painting, new carpet, laminate flooring, etc.? And if that is a tax deduction of some sort, what percentage of what we purchased should I expect to get back? Thank you for your reply!!

[Samm1970]

1040 A is the return you'll file. For the rest, you need a tax accountant.

[efflandt]

I almost thought Samm1970 meant form 1040A until I noticed the space (really form 1040 and schedule A).

In some states property taxes are due the year after they are for. But it looks like Maryland charges them for the current year (due in Sept. and Dec.). So you can likely also deduct the difference between estimated 2005 property tax paid or credited to you by previous owner and actual taxes due for 2005 tax year. Then for 2006 tax year, you can deduct the full property tax bill.

At some point you may find yourself getting a big income tax refund and will want to file a revised W-4 form with your employer, if you want to utilize that money throughout the year, instead of Uncle Sam holding it interest free until tax time.

For federal tax forms/docs see [url]http://www.irs.gov/[/url]