I live in Florida I brought a house this year and I was told that I can claim some of my intrest from my mortgage payments. So far I paid 11, 000.00 in intrest. Is it true that I can claim 3% from the 11, 000.00? If not how much intrest will I be intitled to?
2006-11-20 03:00:23 · 4 answers · asked by Cowgirl Joe 2 in Business & Finance ➔ Taxes ➔ United States
So, Wayne are you telling me that I will be getting the entire 11,000.00 back? If not what percentage of it?
2006-11-20 03:20:07 · update #1
Three % has nothing to do with anything on your federal tax return and you do not pay income taxes in Florida. If you itemize (schedule A) and it would appear that you should all of the mortgage interest and property taxes are deductible. As a new homeowner you will want to take the closing statement to you tax preparer as there may be some items on that form that are deductible as well. Be sure and keep that document for your records as it will help to determine if you have a tax liability when you sell this home. If you have not done so in the past this might be a good time to us a tax professional to prepare your return as things are a bit more complex now that you are a home owner.
2006-11-20 03:24:02 · answer #1 · answered by ? 6 · 0⤊ 0⤋
The interest you paid on your home, any property taxes, and possibly some other items become itemized deductions, and that total is subtracted from your income before figuring your tax.
If you don't have itemized deductions, you are allowed a "standard deduction" anyway (last year was $5000 for single, $10,000 married filing joint, will be a little more this year). You get the standard deduction or your total itemized deductions, whichever is larger. So itemizing really benefits you only by the amount that your total itemized deductions exceed the standard, and then only a percentage of that difference.
2006-11-20 22:28:47 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Wayne Z is right, all of your interest paid on your mortgage is tax deductible. There are also a few other things that are deductile in relation to your new home. Your real estate taxes that you pay to your state are tax deductible on your federal taxes.
You will not necessarily get it all back. If you're only using your mortgage interest with no other credits, you will only receive back any amount you paid into your taxes.
Example
You paid $4,000 in taxes throughout the year. Your itemized deductions reduce the tax amount you actually owe down to $2000. You will then receive a $2000 refund.
2006-11-20 11:09:28 · answer #3 · answered by koral2800 4 · 0⤊ 0⤋
All of the interest payments that you pay on your home are an itemized deduction on Schedule A of the 1040.
You have more than enough to itemize. Review Schedule A to see what else is deductable.
No, you won't get all $11k back. How much it benefits you depends on your tax bracket. There is not enough info provided to estimate how much you will get back this year.
2006-11-20 11:03:45 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋