How much will I get back this year if I make $49000 for the year and paid $6800 in federal taxes....?

Question

I am single and bought a house this year. The total amount of interested I paid for the house will be $2500 and about $4000 in closing costs.

I paid about $1500 in state taxes and $1000 for city tax.

I might make over $50000...would that put me in a higher tax bracket? Is there a site that you can find all this information??? Thanks for the help guys!!!

Answer 1

Sorry, but it'll take a lot more information than that to calculate your taxes.

Answer 2

If your mortgage interest and property taxes and any other itemized deductions are less than $5,350 you'll get no benefit from them. Your itemized deductions must exceed your standard deduction to make it worthwhile to itemize. Your state and city tax bring you close but without knowing what your property taxes are for the year it's not possible to say if it would be worth itemizing.

Closing costs are not deductible. Prepaid interest (points) is deductible but is almost always reflected on the Form 1098 from the lender.

Assuming that you don't itemize your taxable income works out to $40,250. The tax on that would be $6,486.25. That leaves you a refund of $313.75.

The next tax bracket rollover point for you would be at a taxable income of $77,100 so if your income is $50,000 you won't be in another tax bracket. You're in the 25% tax bracket now so an extra $1,000 income would attract an additional $250 in tax.

If you know your property taxes, add them to your mortgage interest and city and state taxes, plus any other itemized deductions. If that total exceeds your standard deduction amount ($5,350 for 2007) reduce your tax bill by 25% of the difference. My guess is that your city tax is actually your property taxes -- $1,000 would be very high for a city income tax -- so you still may not have enough to make itemizing worthwhile.

Hope this helps.