How Buying a Home Will Affect My Taxes

Purchasing a home offers a great tax benefit.

The money paid for mortgage interest, property tax, and other payments associated with financing a home are tax deductible, which means they reduce the total amount of your tax bill.

To take advantage of this tax benefit, you’ll need to file the "long form" Form 1040, when you file your taxes every year, rather than the Form 1040EZ. The tax-deductible costs of owning a home will be reported on Schedule A—Itemized Deductions.

For more information, see the IRS website.

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