Buying: A House Tax Return

: A major change for 2026 is the increase of the SALT cap. You can now deduct up to $40,000 ($20,000 for married filing separately) for combined state and local taxes, including property taxes. This benefit phases down for homeowners with a Modified Adjusted Gross Income (MAGI) over $500,000.

First-Time Home Buyer Tax Credits 2026: Deductions & Savings buying a house tax return

To claim most homeownership-related tax breaks, you must on Schedule A of Form 1040 instead of taking the standard deduction. For the 2026 tax year, the standard deduction amounts are: Married Filing Jointly : $32,200 Single / Married Filing Separately : $16,100 Head of Household : $24,150 : A major change for 2026 is the increase of the SALT cap

: If you paid "points" at closing to lower your interest rate, you can typically deduct the full amount in the year of purchase for a primary residence. First-Time Home Buyer Tax Credits 2026: Deductions &