Lets say you pay $3K on your taxes a year when Income Tax rolls around does the IRS give you some of that money back or what?
2007-08-22 09:32:09 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes thats my taxes due in November of this year, have 2 kids own a home and married.
2007-08-22 09:37:22 · update #1
You don't get a direct refund on your property taxes on your federal return, but instead claim them on Schedule A - Itemized Deductions under Taxes You Paid - Line 6 - Real Estate Taxes. If the Property taxes you paid, plus all the other Itemized Deductions are greater than taking the standard deduction (which differs depending on marital status, age, and if legally blind) then you can claim Itemized Deductions instead of taking the standard deduction. So, indirectly through the Itemized Deductions you do get a % of your property taxes back, and the % would be equal to what your tax bracket is. If you are in the 15% bracket, you'd get 15% of your property taxes back. But if you don't itemize, then you don't get any benefit from paying your property taxes.
2007-08-22 10:09:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you itemize, you can take a deduction for real estate taxes that you paid that year - also for mortgage interest, and for a number of other items not related to your home. If your itemized deductions total more than your standard deduction, then you will pay less in taxes because of those deductions assuming that you have any tax liability. So in essence you would get some (generally a small portion) of your taxes back.
If you don't itemize, then you get no income tax benefit from paying the property taxes.
2007-08-22 10:03:09 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You mean you paid 3k real estate taxes during the year. Assuming these were real estate taxes they are deductible on your IRS return. The only exception I can think of would be on your third personal house (ie all investment/ rental property taxes are deductible as are taxes on your own home and even on your 2nd home). So if you had a main house, a beach house, and a mountain house and these were all for personal use; then one of the last 2 houses would not be deductible. Heck, if you've got 2 houses just for fun beyond your main residence you probably don't need the deduction anyhow.
PS - This assumes you itemize, not sure if you can deduct these taxes if you don't.
2007-08-22 09:39:13 · answer #3 · answered by Slumlord 7 · 0⤊ 1⤋
You DO NOT RECEIVE A REFUND on taxes.
What you do get is a deduction from your gross income of the amount paid, less any other deductions. This results in your adjusted gross income, subject to the tax percent related to the total adjusted income.
If you are in a 20% tax bracket, you save 20% of the taxes paid.
The bracket may be higher or lower, then you would save that percent.
2007-08-22 09:43:43 · answer #4 · answered by ed 7 · 0⤊ 1⤋
Depends on your situation and income. I would say if you are making under 50k a yr then if your income tax is 3k you should get some back or owe lower pending on your circumstances.
Taxes suck! But I like our military, roads and firemen! Too many street signs though-we could save on that ****!
2007-08-22 09:36:14 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Property taxes are deductible on your federal taxes. That means you may owe less to the IRS or your refund may increase when you file.
2007-08-27 09:31:37 · answer #6 · answered by Plea_of_insanity 5 · 0⤊ 1⤋
you do not get refunds on personal property taxes. You can deduct them from your income tax.
2007-08-22 09:35:45 · answer #7 · answered by wish I were 6 · 1⤊ 1⤋
Yes, if you itemize your deductions, property tax can reduce your tax burden.
2007-08-22 09:35:50 · answer #8 · answered by lunatic 7 · 1⤊ 1⤋
Not if you owe it.
They'll take it and send you a bill for more!
2007-08-22 09:36:07 · answer #9 · answered by RUNINTLKT 5 · 1⤊ 1⤋
no way...I wish! Its not a deduction
2007-08-22 09:36:00 · answer #10 · answered by lane 3 · 0⤊ 2⤋