I bought a house this year and hope to get a big refund.
2007-08-15 00:46:44 · 7 answers · asked by Patrick C 2 in Business & Finance ➔ Taxes ➔ United States
Sure. A refund situation happens when too much tax is withheld in relation to your tax liability. If your tax liability goes into negative territory through refundable credits it's possible to get back more than was paid in. Someone who has $10,000 withheld probably won't run into that situation very often but it IS possible at least in theory.
Don't expect a home purchase to generate a huge tax benefit. And don't expect any tax benefit in the first year unless you bought very early in the year, especially if you are married, unless it is a very expensive property.
2007-08-15 01:19:18 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
If you had $25,000 withheld and owed $10,000, sure, you'd get the extra $15,000 refunded to you.
The most any deduction, including those for houses, can do is reduce your tax to zero, and that would be pretty unusual. Don't spend that big refund - I think you are going to be disappointed. If you were already itemizing, and your deductible house expenses were $8000, and you are in a 15% bracket, your tax savings for the year would be $1200. If you weren't already itemizing, it would be less, since when you itemize to take the house deductions, you no longer get the standard deduction which this year is $10,700 for a married couple - you only get any benefit from the amount your itemized deductions are over that, and then only get a percent of the extra equal to your tax bracket. So if for example your itemized deductions totalled $14,000, your tax benefit from itemizing would be a percent of $3300 - in a 15% bracket would be $495 - in a 25% bracket, would be $825.
2007-08-15 11:18:05 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
It is possible to get more than a $10,000 refund if you paid in $10,000 in taxes, but not from buying a house. There are refundable credits (credits you get even if your tax liability is $0), such as earned income credit, but there is no refundable credit you can get from having bought a house.
2007-08-15 08:49:53 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Theoretically possible but not likely.
As others have said, do not expect a huge benefit from buying a house, especially in the first year.
2007-08-15 09:13:19 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
Nope
2007-08-15 07:50:35 · answer #5 · answered by Regina. 3 · 0⤊ 1⤋
Not from buying a home.
2007-08-15 07:49:23 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Sorry to disappoint you, but you can't.
2007-08-15 07:51:17 · answer #7 · answered by Professor 2 · 0⤊ 1⤋