I need some idea of how much I will owe or get back on my 2006 taxes!?

Question

My husband and I file married-joint. Together, we make approximately $57,000 / yr. We have always had "0" withheld on our w-4 forms, and got a modest return. This year, however, we both purchased a first home (5 "points" were paid + we paid approximately $5,500 in interest in 2006); also, we had a first baby. When the baby was born, the primary income earner (myself) changed withholdings to be "2" as vs. "0." My husband kept his withholdings at "0".

Now it's tax time, and we have NO IDEA how much we will either owe or get back. Any tax wizzes out there willing to help?! If we're going to owe, we're going to have to think of something quick ... ;0( Thanks!!

Answer 1

There's no way to tell from the information provided. You'll have to prepare your actual tax return to know where you sit.

It's always a wise idea to leave your withholdings alone in the year that you buy a home unless your total interest is fairly high and you buy very early in the year. You need at least $10,300 in itemized deductions to get any benefit at all from the home mortgage interest, property taxes and points.

Many new homeowners are surprised to discover that they don't have enough itemized deductions in the first year and if they cut their withholdings in anticipation of the tax savings they can wind up owing on Tax Day.

Answer 2

There is no way of knowing - without knowing what your combined total income is, what your other deductions may be for your Schedule A (real estate taxes, local and state income taxes, charitable deudtions, etc), how much was withheld from your paychecks for fedral taxes.

Answer 3

its hard to say without knowing what your total withholding is, and other unknowns.
but if you have deductions like mortgage interest, r/e taxes and a new baby, then i promise you will get a nice refund. plus youll get child tax credit of $1,000.