This year i will be able to claim a full year interest paid in my new home.?

Question

How much more money will i see on my tax return?...We have paid 10.000 in interest. I normaly get 2200 back

Answer 1

it depends on your tax bracket - if you are in a 10% tax bracket, you will get 10% back - 50% bracket - 50% back.

Answer 2

First of all, you indicated in your question "we". So I am assuming you will be filing "Married Filing Jointly". Your itemized deductions (Mortgage Interest) must exceed your standard deduction of $10,700. There are other things you will need for your itemized deductions such as: state and local taxes paid, real estate property taxes, personal property taxes, donations etc. Your itemized deductions will go on a Schedule A.

Answer 3

To figure out how much extra you'll see in your refund, add up all of your itemized deductions including the mortgage interest and real estate taxes, and subtract 10,700 if you are married filing a joint return, $5350 if you are single. Then multiply that number by your tax bracket. You subtract the 10,700 or 5350 because if you itemize, you don't get the standard deduction, so your tax savings is based on the amount your itemized deductions are OVER the standard deduction.

An example: if your total itemized deductions are $16,000 and you are in a 15 % bracket and filing a joint return, your tax savings from itemizing would be (16,000 - 10,700) * .15 or $795.