hello
i bought my house in tx dec 06.its been a year so they teling me that i can get back some money based on how much i payed in interest in my payments...How do i calculate? do i realy get something? my property taxes alone are 2600
2007-11-09 16:54:50 · 5 answers · asked by MJ1977 2 in Business & Finance ➔ Taxes ➔ United States
The bank that you paid the interest to sent you a statement with the interest you paid. You need to make an ammendment to your 2006 tax return. Most likely you'll get money, it depends how you filed the original time. Get Turbo Tax and you can see which way is the best, if you are going to itemize (if you claim the interest) or not.
2007-11-09 17:01:36 · answer #1 · answered by blas 5 · 0⤊ 0⤋
Your tax dollar savings are the total of your itemized deductions, minus the standard deduction, times your tax bracket. If you don't itemize, there are no savings. As others have said, the standard deduction for 2007 is $5350 if you are filing as single, $10,700 if you are married filing jointly. The reason you have to subtract the standard deduction to figure your savings is that you'd get that anyway if you didn't itemize, but won't if you do itemize.
An example: If your itemized deductions total $14,000, you are married filing a joint return, and you are in the 15% tax bracket, your tax savings would be (14,000 - 10,750) x .15 or $495. Fill in your own numbers to see what you'll save in taxes.
2007-11-10 03:11:49 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Your bank will send you and the IRS a statement that shows how much interest that you paid in 2007 in January 2008. This statement will also show how much property taxes that were paid as well.
You will need to itemize your deductions.
2007-11-09 23:10:47 · answer #3 · answered by Steve 6 · 0⤊ 0⤋
For 2007, you will need to itemize your deductions. If your itemized deductions are more than your standard deduction of $5,350 for Single ($10,700 for Married Filing Jointly), then you should itemize. You will claim Mortgage interest and property taxes deduction, and may be some other deductions.
2007-11-09 17:15:54 · answer #4 · answered by MukatA 6 · 0⤊ 0⤋
To save money on your taxes, you need to itemize. You need to add all deductible items including interest and property taxes and many other things. If you are single, they need to add up to over $5200 or $10400 if married before it can reduce your taxes. See a tax preparer for more info.
2007-11-09 17:04:33 · answer #5 · answered by Patrick S 3 · 0⤊ 0⤋