Is there a limit to the deductions(for interest rates) on a income tax return?

Question

If I paid 300,000 a year in mortgage interest, and I paid 350,000 in taxes, can I possibly claim the full amount and receive a full refund?

Answer 1

First of all you can only deduct interest paid on a total of $1,000,000 of mortgage debt plus the interest paid on a $100,000 home equity line. Interest on debt above these limits is non deductible unless you can trace the use of funds to an investment suck as stocks and bonds.
In addition if your adjusted gross income is in excess of a certain dollar amount you lose your deductions by 3% of the amount of AGI above the limit. This loss of deductions is limited to 80% of your allowable itemized deductions

Answer 2

Waggy's answer is 100% correct. In addition, there is no limit on the amount of Real Estate or State Income Tax you can put on your Schedule A. Like Waggy said, if your income is high enough, most items on Schedule A slowly begin to fade away until they are down to only 20% of their original value. That means that if you paid $50,000 in RE taxes and your income is high enough, you may only get to claim as little as $10,000 of it.

Finally, if your income is high enough, you may be subject to AMT. If so, AMT does not allow you to deduct any taxes paid including RE and state taxes. It does allow mortgage interest, but not home equity loans. If you are subject to AMT, please consult a tax professional.

Answer 3

You made an entire of $26,749. Your exemption and classic deduction upload as plenty as $9500. that delivers a taxable earnings of approximately $17,250, meaning you owe tax of approximately $2150. because of the fact of this you're actually not getting back each and each element you had withheld -- because of the fact as an person citizen who makes a usual rate living, you should pay some tax. All adults do. in case you acquire back *each and each element* you had withheld in previous years, the two you earned very plenty plenty much less, or you made some form of mistake on your previous returns. You owe taxes in case you're making extra suitable than the minimum, it extremely is $9500 this twelve months and could have been not extra suitable than that in the time of previous years.

Answer 4

there is a formula for figuring interest that is deductable. Find the schedule for mortgage interest and go from there. irs.gov