Just bought a new house last january, and im wondering about how much more I will see on my tax return?

Question

I usually get about 2200 back. But now i will get to deduct 12 full months of house interest im wondering if it will be alot more back or a little?...500...1000..1500?...Me and my wife will most likely make about 55.000..and our house payment is 1200

Me and my wife will bring home about 55.000

Answer 1

It will depend on the amount of itemized deductions (Schedule A). Mortgage interest & Property taxes will help reduce your taxable income, because typically they (along with other itemized deductions) are larger than the standard deduction. Also, for this year and maybe next year, certain home improvements earn you a dollar for dollar tax credit, therefore reducing the tax that you would owe..

Answer 2

Your itemized list may be less than the $10,300 standard for a couple . ( side 2 of the 1040 )

http://www.irs.gov/

Pull up schedule A to start figuring your deductions .
You need more than $10,300 to make it worthwhile and only part of that $1200 is the % .
Some is principal , some is insurance (cannot list that on Sched A) , nor PMI if you pay that .

Pull up the 1040 booklet , time to give it a once over .

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Answer 3

Total up your itemized deductions - the mortgage interest and real estate taxes, plus things like state and local income tax and charitable contributions - and subtract your joint standard deduction of $10,700. Then multiply by your tax bracket of 15%. That will be your tax savings.

An example - say your mortgage interest and real estate taxes total $12,000, and you have another $6000 in itemized deductions. Your total savings by itemizing would be $18K - $10,700, or $7300, times 15%, so would be $1095.