If you are a new homeowner or if you have owned your home for years, there are many deductions available for both situations.

Previous Home Purchases

If you own your home you may deduct the interest on your home loan every single year that you own your home. You may also deduct the property taxes for every year you own your home.

New Homeowners

If you are a new homeowner then you can also deduct any loan origination fees for your home purchase. If you have purchased your home after April 8,2008 and before December 1, 2009 then you can take advantage of the first time homebuyers credit. This credit could be as much as 3% of your home purchase. The maximum credit allowable is $7,500.00.

This credit must be paid back in installments each tax year. To claim this credit you must use Form 5405. If you have already filed your return and did not claim this credit, you can amend your return to receive it using Form 1040X and attach Form 5405.

If you are a homeowner then you will most likely see the most tax benefits from itemizing your return. You must itemize in order to take the following deductions:

• Mortgage Interest Tax

• Loan Origination Fees

• Points

• Mortgage Insurance Premiums

• Sale of Your Home

• Deductions on a Second Home

In order to claim these deductions you will need to have some documentation available to you such as your mortgage statement, property tax statement, mortgage insurance statement, and any loan closing information that lists the amount of fees paid to purchase your home.

TurboTax Online offers step by step instructions on claiming your home mortgage property tax related deductions.