I'm new to this sort of thing. I want to buy my first house soon (within a year?).
As I am filing my taxes right now, should I
- file with my income but not report expenses, so that my taxable income looks higher, or
- report my expenses, so that my taxable income is lower?
Is the first option even allowed? Can we choose not to report expenses, and thus pay more taxes on higher income? Does reporting all expenses, and therefore having a lower monthly debt-to-income ratio, increase my chances? Should I report some expenses, and be in the middle somewhere?
What should I do, in regards to filing taxes, to maximize my ability to get a mortgage?