Buying your first home is a major event in anyone’s life. And it comes with new responsibilities, including preparing for tax season.
From mortgage interest statements to closing disclosures, staying organized can help you claim deductions and file with confidence.
This guide breaks down the essential tax documents you’ll need after purchasing a home, how to manage them, and what deductions could lower your taxable income.
Want personalized guidance? Get started with GO Mortgage today.
What tax documents should new homeowners expect?
When you buy a home, you’ll receive several key documents that can impact your tax return. Most of these arrive in January or early February, so watch both your mailbox and your email inbox. Here are the most important ones:
Mortgage interest statement (Form 1098)
The 1098 form is typically issued by your mortgage lender. It reports the amount of interest you paid on your loan throughout the year. If you itemize deductions, this form is essential for reducing your taxable income.
Closing disclosure or settlement statement
Your closing disclosure details every cost associated with finalizing your home purchase. Some of these, such as prepaid interest or mortgage points, may be tax-deductible. Keep this document in a safe place—it can support deductions that don’t appear on your 1098 form.
Property tax records
In many cases, property tax payments are included on your 1098 or closing disclosure. But if you pay property taxes directly (for example, if you opted out of using an escrow account), be sure to track these payments separately. Local tax statements or receipts can serve as documentation.
For a deeper dive into how homeownership impacts your taxes, check out Tax Benefits of Homeownership.
How can you organize digital vs. paper tax records?
With more lenders, banks, and service providers offering paperless options, many tax documents are now digital. Staying organized throughout the year can make filing your return less stressful and reduce the chance of missing a valuable deduction.
Here are simple ways to keep everything in order:
- Set up a dedicated tax folder in your email to save digital forms and confirmations.
- Create a spreadsheet to help you keep track of important details like:
- Expense titles
- Check numbers or transaction IDs
- Payee names
- Dollar amounts
- Dates
- Download and save PDFs of bank or mortgage statements as soon as they become available.
- Consider printing critical documents with limited digital access windows, especially if your lender or bank only stores them for a short period.
What deductions and credits should you track year-round?
As a homeowner, you may be eligible for deductions and tax credits throughout the year, not just at purchase. Start building smart habits now by tracking:
- Mileage for deductible trips, including charitable work, business travel (if self-employed), or medical appointments.
- Parking fees and tolls tied to those trips.
- Charitable contributions, including cash and in-kind donations.
- Healthcare expenses, especially if they exceed 7.5% of your adjusted gross income.
- Energy-efficient home improvements (such as heat pumps, solar panels, or insulation) may qualify for energy tax credits.
- Home improvements made for medical necessity, like wheelchair ramps, if prescribed by a doctor.
Keep original receipts, invoices, and proof of payment for all these expenses. If you’re unsure whether something is deductible, save it anyway—you can confirm with a tax advisor later.
Why do life events matter at tax time?
Major life changes often have tax implications, and the supporting documents may be necessary when filing. If any of the following occurred during the tax year, hold onto related paperwork:
- Marriage or divorce: Include any settlement agreements, name change documents, or changes in filing status.
- Death of a spouse: Keep copies of death certificates and any financial account transitions.
- Adoption or child custody: Secure all legal paperwork and Social Security numbers for dependents.
- Birth of a child: You’ll need a Social Security card and childcare receipts. Contributions to college savings accounts may also be deductible.
Your new home also plays a role in year-round planning. Save receipts and documentation for:
- Home improvements—especially those that may increase your home’s value or are medically necessary.
- Energy-efficient upgrades, such as new windows, water heaters, or solar panels.
- Refinancing paperwork—in case you later refinance and need prior documentation for deductions.
For more guidance on purchasing your first home, explore our ‘Steps for Buying a House‘ guide.
How long should you keep past tax records?
While the IRS recommends keeping tax returns for at least three years, homeowners should often retain documents longer, especially those related to property transactions. Here’s a general rule of thumb:
- 7–10 years for tax returns, supporting documents, and mortgage statements.
- Indefinitely for closing disclosures, home improvement receipts, and documents related to the home’s purchase price or value.
These records can be essential if you’re ever audited, sell your home, or apply for financial aid or a loan.
You can also reference the IRS “Where’s My Refund?” tool, which often requires past return data.
Can you amend a past tax return to claim missed home deductions?
Absolutely. If you bought a home and overlooked eligible deductions, you can generally submit Form 1040-X to amend your return within three years of filing or two years of paying the tax, whichever is later.
Here’s when it makes sense to amend:
- You forgot to claim mortgage interest or property taxes
- You discovered points paid at closing that weren’t deducted
- You became aware of energy-efficient upgrades that qualified for credits
Before filing, consult a tax professional to ensure the changes are accurate and beneficial. Amending can result in a refund if your original return didn’t capture your full eligibility as a homeowner.
How GO Mortgage helps you plan ahead
At GO Mortgage, we’re committed to helping you feel confident, not just at closing, but long after. From digital tools to local advisors, we’re here to support your journey with:
- Expert advice on mortgage programs with potential tax benefits
- Clear documentation for your annual filings
- Guidance on refinance timing, second mortgages, and cash-out options
Need a hand navigating your next move? Start planning with GO Mortgage now.
We’ll help you stay organized and unlock the full benefits of homeownership.