[Petitepuce]

This may seem like a silly question, but I just want to ask for some advice.

My divorce was finalized in mid-December of 2012 - so I know that I should be filing my returns using a "single" status since the divorce was finalized prior to 12/31.

I also purchased a home about a week after the divorce decree was signed off by the court so I am wondering if my tax return will be a tad complicated for me to file myself.

I'd like to save money and not bother paying to have my tax returns done for me, but since I'm not too experienced in the matter, I was wondering if my recent divorce and home purchase may make things a bit complicated for me on the tax return.

My gut tells me it won't be a difficult tax return since there was no marital home sale or dependent children involved in the divorce. The marital home sale was taken care of in a previous tax year, and my daughter is no longer a dependent at this point.

Since my new home was purchased so late in the year, I'm wondering if there will even be any major tax write-offs to consider at this point. I've never filed a tax return as a home owner - my husband always did that, so I'm not sure what write-offs I will actually be able to claim. I did not pay points on my loan, and didn't make my first mortgage payment until February 2013 so there's probably no mortgage interest to apply to my 2012 tax return - right? I did pay my PMI upfront to avoid monthly PMI payments ontop of the principal and interest payment. I was thinking the PMI write-offs might go away in 2013 with the fiscal cliff. I don't think that happened, but I'm still happy to have less to pay each month at this point.

Anyway... just curious if anyone has some thoughts on whether my tax return may be simple enough for me to do myself using Turbo Tax or if there really may be a good reason to let a professional prepare my return this year.

[ebaines]

The only deduction the home might give you for 2012 is the PMI you paid and any real estate taxes to the town in December after purchasing the property - which is unlikely. As you note you have no mortgage interest payments in 2012, so nothing to deduct there. As you prepare your return you will want to add up all your possible deductions (for example perhaps in addition to PMI you may have charitable giving, and state and local income taxes paid in 2012) and see if they add up to a number that is bigger than the standard deduction. If they are then you itemize your deductons, and if they aren't then just take the standard deduction.

A year from now when you are working on your 2013 taxes you should receive a form 1098 from your mortgage holder, which will document the amount of mortgage interest you paid in 2013 and any real estate taxes they paid on your behalf.

I suggest that as a new tax filer you review IRS pub 501 and pub 530. The first is a general guide to income tax and the second is a guide to tax issues for homeowners. They are available here:

http://www.irs.gov/pub/irs-pdf/p501.pdf
http://www.irs.gov/pub/irs-pdf/p530.pdf

I also suggest you consider purchasing tax return software such as Turboax. There is a free version available on line which is probably good enough for your situation. Be sure to print out a copy of your return and save it!

[Petitepuce]

The only deduction the home might give you for 2012 is the PMI yu paid and any real estate taxes to the town in December after purchasing the property - which is unlikely. As you note you have no mortgage interest payments in 2012, so nothing to deduct there. As you prepare your return you will want to add up all your possible dductions (for example perhaps in addition to PMI you may have charitable giving, and state and local income taxes paid in 2012) and see if they add up to a number that is bigger than the standard deduction. If they are then you itemize your deductons, and if they aren't then just take the standard deduction.

A year from now when you are working on your 2013 taxes you should receive a form 1098 from your mortgage holder, which will document the amount of mortgage interest you paid in 2013 and any real estate taxes they paid on your behalf.

I suggest that as a new tax filer you review IRS pub 501 and pub 530. The first is a general guide to income tax and the second is a guide to tax issues for homeowners. They are available here:

http://www.irs.gov/pub/irs-pdf/p501.pdf
http://www.irs.gov/pub/irs-pdf/p530.pdf

I also suggest you consider purchasing tax return software such as Turboax. There is a free version available on line which is probably good enough for your situation. Be sure to print out a copy of your return and save it!

Thanks for your suggestions and for the helpful links. I've printed them out and will browse through them for additional guideance.

[AtlantaTaxExpert]

Also, try TaxAct online. I think it us a better program than TurboTax.