I only worked a couple months because I've gone back to grad school. However I have $35K in mortgage interest deductions. Does this make sense? I also have a child and am claiming that deduction.
2007-02-28 14:36:20 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Thanks for the answers. To answer the $600k mortgage question, I had a large divorce settlement which I put into a money market and use to pay my mortgage.
2007-02-28 15:27:25 · update #1
Yeah... my father had his own business and ended up with more deductions than taxes because of (legitimate) business expenses, so I'd imagine this could apply for "normal" people as well. If you have student loans, the interest on those is also tax-deductable.
2007-02-28 14:42:44 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Um... $35,000 in mortgage INTEREST??? You're sure that isn't the principal and interest together? Remember, you are only allowed to deduct mortgage interest on only one home or one main residence and a vacation home.
You should have $3300 per person in personal exemptions, and if you're itemizing, then you won't use a standard deduction.
If you're eligible for earned income credit, then it's conceivable you'll have a pretty large refund, but... if I was doing this, I'd print out the return as you have it and take it to a tax professional to look it over.
Block or Jackson-Hewitt should look it over without charging you to do so. I'm pretty sure the folks at Block will, because I'm a preparer for them and we do that all the time in our office.
If your earned income was in the neighborhood of $20K, it makes sense that you might have such a refund, but it would still be better to have another person--preferably objective and knowledgeable--look it over before filing it.
2007-02-28 14:48:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Sounds like Turbo tax is giving you and earned income credit (EIC). This was a refundable credit developed by congress as another form of welfare for low income families. You could potentially be entitled to the credit, but you may want to get your return reviewed or prepared by a professional. Turbo tax is a good program, but it can also get you in trouble if you don't follow the instructions closely.
2007-02-28 14:51:26 · answer #3 · answered by Homeslice 4 · 0⤊ 0⤋
$35 K in mortgage interest ? You have a $600,000 mortgage loan, were able to pay it and only had $900 in taxes ?
How did you qualify for $600,000 loan and not have any real income or know anything about taxes ?
Something here just does not add up ! ?
2007-02-28 14:47:17 · answer #4 · answered by kate 7 · 0⤊ 0⤋
I have used TurboTax foir years and have NEVER seen them make a mistake, especially in arithmetic. If they say you are getting that money back then don't fight it. They may know some detail about how to handle deductions that you will never figure out so just enjoy that larger refund.
2007-02-28 14:43:24 · answer #5 · answered by Rich Z 7 · 0⤊ 1⤋
It sounds like it might be Earned Income Credit. If you're income is under a certain amt. and you're over 25 that might be it.
Not really important what it is. If you meet the criteria for it, its pretty much just free money.
2007-02-28 14:53:02 · answer #6 · answered by Mark 2 · 0⤊ 0⤋
Yes it does....
Do you also qualify for "Earned Income Credit"??
But, if your still unsure....
Run your numbers again on paper...sometimes seeing it on paper in front of you will make it click...
2007-02-28 14:47:38 · answer #7 · answered by nuroticmom 2 · 0⤊ 0⤋
maybe an adjustment from previous years
2007-02-28 14:41:00 · answer #8 · answered by Me 4 · 0⤊ 1⤋