My wife and I just bought our first home and I know that this coming tax year we can deduct mortgage interest and property tax. We both have full-time jobs, file jointly , and have a, before taxes, combined income of roughly $70k. We have 3 kids and will also recieve the full child care tax credit. The mortgage interest and property taxes for 2007 will total around $9k. What kind of number could I roughly expect to get back in my taxes for 2007?
2007-03-27 07:00:37 · 8 answers · asked by joconn10 1 in Business & Finance ➔ Taxes ➔ United States
Standard deduction for 2007 is $10,700, see 1040_ES. You need around $1700 more to make it worthwhile itemizing. State income tax or sales tax might make it.
Your exemptions are 5x$3400 = $17000.
Taxable income = 70000- 27700=42300.
Tax = 5563.
Tax credit (3 children) = $3000
net tax owed 2563.
What you get back depends on what you have withheld.
2007-03-27 09:16:03 · answer #1 · answered by CarVolunteer 6 · 0⤊ 0⤋
You already get a standard deduction in 2006 of $10,300 on a joint return - it'll be a little higher next year. So add up your total itemized deductions, subtract 10,300 from the total since if you itemize, you won't get the standard deduction. Multiply the difference by your tax bracket, and that's how much you'll save.
You said your mortgage interest and real estate taxes are around $9000. Say you have an additional $5000 in itemized deductions from state and local income taxes, charitable contributions, and any other deductible items. You're probably in a 15% bracket. Your refund would be (14,000 - 10,300) * .15 or $555 extra because you itemized.
2007-03-27 18:19:20 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
No way to say from the information given.
If your mortgage interest and property taxes are your only itemizeable deductions there isn't enough to bother itemizing so you'll get no tax benefit from home ownership this year. If your tax situation for 2007 is about the same as it was for 2006 you should be in a similar position next year.
2007-03-27 14:23:14 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Your refund will depend on what your withholding is. Congress may raise taxes to pay for things such as ILLEGAL aliens and Universal health care. What state do you live in?
Sorry but you don't give enough info to answer. Anybody that give you a figure is probably wrong because they are just guessing.
2007-03-27 15:12:35 · answer #4 · answered by JessicaRabbit 6 · 0⤊ 0⤋
With an income of $70,000, you're most likely in the 25% bracket.
Which means that you can deduct 25% of what you paid in mortgage interest. Roughly speaking.
Or, to be more correct, your AGI is reduced by the $9000. Which means you'll pay taxes (at tthe 25% rate) on $9000 less in income.
You're looking at a bit over $2000, by my quick calculations.
2007-03-27 14:12:40 · answer #5 · answered by Jay 7 · 0⤊ 5⤋
for 2006 your standard deduction was/is $12,300.
so you'd need another $3,300. in itemized deductions on Schedule A to just break even. (the state income tax you pay counts)
In some states that have income tax, you would benefit to use itemized deductions even if not used on federal return.
2007-03-27 14:37:11 · answer #6 · answered by Jo Blo 6 · 0⤊ 3⤋
You forgot to include how much federal taxes withheld on both of your income.
2007-03-27 16:03:02 · answer #7 · answered by Shayne 1 · 0⤊ 1⤋
just go to turbotax.com
you can make up a name and fill in all the info even with fake ss # just to get through faster
and see what you get back
i did it and decided not to do the long form i got more back this yr by using the standard diduction
2007-03-27 14:10:01 · answer #8 · answered by elite_women_rule_the_rock 6 · 0⤊ 3⤋