is it true??? I'm a home owner...and ofcoure, i pay my property taxes, am i gonna get alot on tax refund?
2007-06-13 19:55:24 · 5 answers · asked by flowerpower 1 in Business & Finance ➔ Taxes ➔ United States
The size of your refund depends on what you claim on your pay checks (which determines how much taxes are taken out of your check), and how many itemized deductions you make on your tax return.
Being a homeowner, there are a lot more deductions to take over someone who isn't.
You can deduct your mortgage interest, property taxes, loan fees (the first year you take out a mortgage) and also if you refinance, you can deduct those fees over the number of years of the refinanced loan.
Even better than getting a larger refund, having more deductions will allow you to claim more exemptions on your paycheck and you would receive a larger paycheck, rather than having the government keep your money interest free until the end of the year.
2007-06-13 20:07:26 · answer #1 · answered by Don 2 · 0⤊ 0⤋
You won't necessarily get more, and if you do, it probably won't be a huge amount more.
Many homeowners with mortgages have enough deductions to itemize, because their mortgage interest and real estate taxes can be taken as itemized deductions. If you weren't itemizing before, and can now that you're a homeowner, then it would probably increase your refund. The amount of the increase is your itemized deductions minus your standard deduction, and that result times your tax bracket.
If you're single, then last year your standard deduction was 5150. I'll assume for calculations that your tax bracket was 15% and that your itemized deductions totalled $10,000. Your refund would have gone up $727.50. The actual amount would depend on your tax bracket and your total itemized deductions.
2007-06-14 06:26:04 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Deductions from owning a home may reduce taxes you owe, but not as much as some people believe.
For example, suppose you have mortgage interest and real estate tax of $12,000 and are married and in the 15% tax bracket. With no other itemizations, the tax reduction from home ownership deductions is less than $200. Most people would not think this is a large increase in their tax refund.
2007-06-14 02:12:32 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
No you are not going to get a large tax refund. you do get to take the taxes and mortgage interest only off your taxed maintenance is not a deduction on the house you live in. this goes on the itemized deductions sheet.
2007-06-14 15:50:41 · answer #4 · answered by K M 4 · 0⤊ 0⤋
I amended to my taxes the day after I closed in 2009...took me about less than 2 months before I had it. Then again, that was for the $8,000.
2016-05-19 23:52:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋